Daimler Truck launched on the Frankfurt Stock Exchange on Friday after the heavy-goods operation was spun off from its holding group, soon to be renamed as Mercedes-Benz.

Truck horns accompanied the ringing of the bell to open the market by Daimler Truck chief executive Martin Daum.

Daimler Truck opened the day at 28 euros, valuing the company at 23 billion euros ($26 billion). The share price rose to around 30 euros during trading before falling back during afternoon trading.

The stock market entry was an "historic day", Daum told AFP, adding that the sector was going through "the biggest upheaval in its history" as it leaves combustion engines behind.

Daimler Truck is targeting an entry into the DAX, when the 40-member blue-chip index is next updated in the first quarter of 2022.

The new truck group's former home Daimler will be renamed Mercedes-Benz after its famous luxury car brand in February next year.

The breakup of the German auto giant and the new moniker were approved in October by shareholders, who will be issued with one share in Daimler Truck for every two they own in Mercedes.

The reorganisation was carried out with an eye to taking on the different technological challenges by the two companies as the auto sector moves away from combustion engines.

Daimler Truck was trading at 28 euros on Friday morning, shortly after the open of the stock exchange, valuing the new company at 23 billion euros ($26 billion)
Daimler Truck was trading at 28 euros on Friday morning, shortly after the open of the stock exchange, valuing the new company at 23 billion euros ($26 billion) AFP / THOMAS KIENZLE

While battery technology is essential to the future of passenger cars, "hydrogen will play an important role in the truck department", said Daimler CEO Ola Kallenius, who will stay on at Mercedes-Benz.

More sustainable vehicles was the goal for both companies "but the roads we will take to get there are different", Kallenius told AFP at the market opening.

In total, 65 percent of shares in the new entity will be passed on to Daimler shareholders, with the remaining 35 percent held by the company itself.

The former group will continue to be represented on the supervisory board of Daimler Truck, though the day-to-day operation of the two companies will largely be separate.

Daimler Truck, which employs around 100,000 for the production of lorries, busses and specialised vehicles, is targeting a "two-digit" profit margin on sales by 2025.

In 2021, the new group expects a figure in the region of six to eight percent, as a shortage of semiconductors, an essential component, has raised prices for the industry.

Daimler fell 15.1 percent at the opening of the stock market, a technical adjustment linked to the spin off of the truck group. The price climbed 1.37 percent during the day to 74.20 euros at 1410 GMT.