SA Truck Sales Still Show Year-on-Year Growth
03 October 2014 | Print
Rory Schulz, acting managing director of UD Trucks Southern Africa, explained that he growth in new truck sales was achieved on the back of above average growth in the Extra Heavy Commercial Vehicle and Bus segments.
The South African truck market has continued to show resilience against the backdrop of low economic growth, interest rates hikes and inflationary pressures. Although the total sales for September have shown a slight 2.80% decline on the previous month’s results, the year-to-date figures have been more positive, growing 1.54% to a total of 23 347 units.
This is according to the latest combined results released by the National Association of Automobile Manufacturers of South Africa (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD).
“The growth in new truck sales was achieved on the back of above average growth in the Extra Heavy Commercial Vehicle and Bus segments,” explained Rory Schulz, acting managing director of UD Trucks Southern Africa. “The strength in EHCV sales, together with the improved business confidence index reported in August, have certainly been encouraging and point to an improvement in investor sentiment.”
During September, both the EHCV and BUS segments continued to impress, growing 8.67% and 14.90% on a year-to-date basis, and concluding the month on 10 540 and 902 units respectively.
On the other hand, Medium and Heavy Commercial Vehicle sales both declined over the course of the year when compared to the same period in 2013. The MCV segment lost 6.64% to stand at 7 997 units at the end of September 2014, and HCV ended the period on 3 908 units, a slight 0.91% decline.
“The outlook for the rest of the year is cautious but optimistic, with possible interest rates hikes and vehicle price increases expected to contribute to a difficult trading environment,” said Schulz. “However, the industry’s resistance despite these challenging conditions is also a true testament to the character and resilience of all involved in trucking.”
UD Trucks experienced three good quarters so far during 2014, growing their overall sales by 5.8% compared to the 1.54% rate of the total market. The company’s Quon range continued to make big inroads in the market, growing 25.56% YTD. Its classic MCV range, which is currently in its run-out year, also experienced a growth spurt of 4.88% on a year-to-date basis.
“We are extremely fortunate that our current truck ranges are continuing to perform outstandingly, and that they are still providing fleet owners with competitive lifecycle costs, dependability and quality,” said Schulz.
“Over the next three to five years, UD Trucks will be introducing a variety of new products and technologies into the country, and we believe that our current product offering is setting the stage perfectly for a whole new era for UD Trucks in the country.”