Truck market in US

Anonymous A asked on Nov 09, 2017 - 1 answer

any thoughts?

(edited)

1 answer

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Anonymous B replied on Nov 10, 2017

Hey there,
Are you talking about revenue or demand for trucks in the US?

Assuming Demand, we can estimate it in the following way:

Our Goal: #trucks sold / year

  1. #trucks = (trucks/person) * (total amount of people)
    • = 1 truck per 100 person (assumption) * 300M people
    • = 3M truck in total
  2. Life-span of trucks are approximately 10 years
  3. #truck / lifespan
    • = 3M/10y = 300K/y (this is your answer if you believe the market is steady)
  4. If you want to integrate a trend:
    • say we have a positive trend in sales because oil prices are dropping globally.
    • Approximately 5% per year, so 5% of the total amount will increase
    • = 300K*5% = 15K
    • Answer of 300K + 15K = 315K
  5. The answer would be: In average 315K trucks will be sold per year in the US.

If you are talking about revenue, assuming the retail price of a truck is about 30K. So revenue generated per year would be $9.45M.

Cheers,
D

Related BootCamp article(s)

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

1 Q&A

Related case(s)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Bain Case: Old Winery

Solved 33.1k times
4.4 5 889
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

Roland Berger Case: Onlinestar

Solved 20.2k times
4.3 5 442
| Rating: (4.3 / 5.0)

Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case

TKMC Case: Elevators

Solved 9.9k times
4.2 5 1066
| Rating: (4.2 / 5.0)

Your customer is the market leader in the North American elevator service business. This is divided into the areas of elevator construction, elevator modernization and service. The customer has a particularly strong branch network in medium-sized cities and would now like to expand its business in ... Open whole case

Nutripremium

Solved 50.3k times
4.5 5 1561
| Rating: (4.5 / 5.0) |

Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitamin-supp ... Open whole case