Kraftur lifts its market share from 10% to 18%

Kraftur, which represents German vehicle brand MAN, increased its market share by 80% in one year, from 10% to 18%, the company’s managing director told Morgunblaðið, according to mbl.is.

Managing director Kristinn Þór Geirsson said the company negotiated lower purchase prices in exchange for buying a set number of vehicles for stock. Kraftur chose a standard model it believed would suit most customers, taking a risk that it could sell the vehicles. He said the strategy had worked.

Delivery times had previously been long, which did not suit customers who wanted to receive their vehicles quickly. Kraftur has also introduced a new computer system to support changes to its internal processes. The market’s four biggest brands are MAN, Scania, Volvo and Benz, Kristinn said.

Kraftur is now offering buses for the first time and plans to expand in that business. One model on display is a luxury bus with fewer seats and more space between them. Kristinn said there was demand for such buses, particularly for Chinese tourists. The company also offers four-axle dump trucks, large vans and Palfinger cranes mounted on trucks.

The family-owned company is marking its 60th anniversary this year. S. Eignarhaldsfélag bought it last year; the company is a sister company of Steypustöðin and part of a business group belonging to construction company Eykt, owned by Pétur Guðmundsson.

Kristinn joined Kraftur on July 11, 2025, when ownership changed. The company decided the following month to design and build new premises, setting a one-year construction target. It has now moved to a 2,600-square-metre building on an 8,300-square-metre plot at Álhella 9 in Hafnarfjörður, where it is holding its anniversary celebration today.

The new building is larger than the company’s former premises at Vagnhöfði in Reykjavík, which measured 1,900 square metres. Workshop space has grown from 800 to 1,200 square metres, and Kristinn said capacity is now two to three times higher. He said the company had fallen behind because of insufficient investment in facilities and equipment, but had now transformed its operations.