Truckmaking Giants Favour Shareholder Payouts Over-Investing Into the Zero-Emission Transition

Why It Matters

The shift jeopardizes the EU’s decarbonisation goals and erodes the competitive position of European OEMs against faster‑moving Chinese rivals, making strong regulatory enforcement critical.

Key Takeaways

• 2025 payouts averaged 4.9% of revenue, outpacing R&D at 4.4%.
• PACCAR paid 8.1% of revenue to shareholders, five‑fold R&D spend.
• Volvo gave €12 bn ($13 bn) to shareholders, only 1.8% revenue to zero‑emission.
• TRATON invested 4.9% revenue in R&D, keeping payouts low at 1.9%.

Pulse Analysis

The European Union introduced its first truck‑wide CO₂ standards in 2019, setting a 2025 reduction target that was later tightened in 2024 with higher 2030, 2035 and 2040 goals. As the deadline approaches, manufacturers have turned their attention to the financial implications of compliance, urging regulators to revisit the rules. Industry groups argue that insufficient public charging infrastructure and toll policies impede adoption of zero‑emission trucks, but the standards remain the primary lever for decarbonisation across the continent.

Profundo’s review of annual reports from 2019‑2025 shows shareholder rewards climbing to an average 4.9% of revenue in 2025, just ahead of R&D at 4.4%. PACCAR paid out 8.1% of revenue—about $6.5 bn in cash—while spending less than $2.2 bn on R&D over the same period. Volvo distributed roughly $13 bn to investors since 2022 but allocated only 1.8% of revenue to taxonomy‑aligned zero‑emission projects, and Daimler Truck matched payouts and R&D at 4.6% each, cutting battery and hydrogen spend. The financial tilt leaves little budget for the battery‑pack and hydrogen‑fuel‑cell programmes needed to meet EU targets.

The funding gap opens a clear opening for Chinese manufacturers such as BYD, Windrose and SuperPanther, which already sell about 16% of new trucks as electric in China and plan EU launches in 2026. European OEMs risk losing market share both at home and in export destinations if they continue to prioritize dividends over green‑vehicle development. Maintaining the ambitious EU CO₂ trajectory, coupled with incentives for charging infrastructure, is therefore essential to force a re‑allocation of capital toward electric and hydrogen trucks and to safeguard the continent’s commercial‑vehicle industry.