AFRICA NEWS
According to the latest results
released by the National
Association of Automobile
Manufacturers of South
Africa (Naamsa), Associated
Motor Holdings (AMH), and
Amalgamated Automobile
Distributors (AAD), the South
African commercial vehicle
industry reported another
growth month in October.
Year-on-year statistics for
October show that sales grew
by 5.3% to 2 648 units, and
looking at year-to-date figures,
total new commercial vehicle
sales are up by 3.3% when
compared to the first 10
months of 2017, to a total of
22 560 units.
Sales in the medium
commercial vehicle segment
increased by 11.6% over the
same month (October) in 2017,
to 782 units. Sales in the heavy
commercial vehicle segment
grew by 0.4% to 521 units,
while sales in the extra-heavy
commercial vehicle segment
increased by 5.2% to 1 224
units. Bus sales were down by
8.3% to 121 units.
Gert Swanepoel, managing
director of UD Trucks
Southern Africa, says that
the industry had to contend
with a lot of sociopolitical and
macroeconomic instability,
but still managed to rally and
produce very positive results.
To put things in perspective,
during the global economic
crisis in 2009, the market didn’t
even reach 19 000 units that
year. While in 2018, amid an
official recession in South Africa,
www.plantonline.co.za
Positive Q3 results in commercial vehicle sector
Latest results released by the National Association of Automobile Manufacturers of South Africa (Naamsa),
Associated Motor Holdings (AMH), and Amalgamated Automobile Distributors (AAD) indicate that sales in the
extra-heavy commercial vehicle segment increased by 5.2%.
the market is projected to reach
more than 26 000 sales.
“This positive result should
be very encouraging for anyone
in business. It proves that if you
work together as an industry to
enhance the internal business
environment, all stakeholders
will ultimately reap the
rewards,” said Swanepoel.
One of the noticeable trends
in the commercial vehicle
sector is the enormous demand
for good quality used trucks.
Currently, fleets are holding on
to their vehicles for more than
15 years, where it used to be at
a replacement average of every
10 years.
This shortage of used
vehicles opened the opportunity
for lesser-known brands to
infiltrate the market at the
lower end of the price scale.
However, without sufficient
aftermarket backup and
support, many fleets battle to
keep going as costs and waiting
periods for replacement
parts soar.
Many of the more
established manufacturers’
vehicles manage to retain up
to 60% of their value at resale,
and they offer competitive
trade-back deals.
“Trucks must be replaced at
the optimum time otherwise
you will just lose money on
it,” explained Swanepoel.
“Customers are currently
spoilt for choice and can pick
and choose between various
offers that include finance and
maintenance contracts. It is
of vital importance to select a
truck that will not just be able
to do the job at hand, but has
proven durability and efficiency
in local operating conditions to
add profit to your business.”
JANUARY 2019
7