(Bloomberg) -- Mercedes-Benz Truck’s intake of fresh orders and its existing backlog remain at very strong levels even as Europe’s economy sputters and production recovers from protracted supply-chain problems. 

“If I look at the order backlog and intake compared to the last two years then it’s slightly down, but if I look at the 10-year perspective then it’s still extremely good,” Karin Radstrom, Daimler Truck Holding AG’s board member for Europe, South America and chief executive officer of the Mercedes truck brand said in an interview. “It’s coming back to a more normal market.”

Better managing the truck supply and demand cycle is pivotal for the world’s biggest commercial vehicle maker’s goal of boosting margins to above 10% by mid-decade to catch up with Volvo AB and Volkswagen AG’s Scania brand. Radstrom, a former Scania executive who has led the Mercedes truck brand since late 2021, has partly delivered a jump in returns by focusing on improvements in the after-sale business. 

Mercedes-Benz Trucks’ profitability is on course to come in at the higher end of a 8% to 10% corridor this year. To be sure, other rivals such as Traton SE’s Munich-based MAN truck brand have also improved as supply bottlenecks eased and cost-cutting drives yielded results. MAN’s operating profit rose to 7.1% during the first nine months of the year. 

Daimler Truck is attempting a sustained lift in margins while transitioning to electric big rigs, where uptake is hesitant because of a lack of charging infrastructure and high vehicle costs. The world’s biggest commercial vehicle maker last month unveiled the eActros 600, a heavy-duty electric truck designed to take on Tesla Inc.’s Semi.

In September, the company announced plans to build a battery factory in the US with partners. 

Excessive regulation and planning hurdles are slowing the pace of the transition to low carbon logistics, said Radstrom. The biggest sticking point remained a plodding charging rollout, which are capping e-truck sales, she said.  

“That’s still probably my top wish,” Radstrom said on speeding up the charging infrastructure construction.

Read more: Daimler Truck Resilient in Volatile Market, Eyes Costs

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