Truck group expects more, but modest 2013 growth
This year could be a further growth year for the truck industry in South Africa, with sales expected to increase by 3% over 2012 to reach 28 114 units, says UD Trucks Southern Africa (UDTSA) corporate planning and marketing GM Rory Schulz.
Truck sales came in at 27 296 units in 2012, up 3.7% on 2011’s 26 302 units. Truck exports from South Africa were up 32.9% in 2012 to 1 065 units.
Schulz says the South African truck market is unlikely to again see such rapid growth as prior to the global economic crisis in 2008 and 2009, but adds that the current growth pattern “is more sustainable and realistic, making planning easier”.
South Africa’s truck market reached 37 059 units in 2007.
The year 2013 will not be a great year for extra-heavy trucks, however, warns Schulz, as the meagre, below-market gains of 1.2% growth last year are likely to be erased, with this segment of the market expected to contract by 2.4%.
This move, says Schulz, can be attributed to developments in the rail sector actively fighting to lure back freight from road transport operators.
“What we see is a healthier shift in goods moving to rail.”
Schulz adds that the muted fortunes of the extra-heavy segment in 2012 have been helped along by the opening of Transnet’s new R23-billion multiproduct pipeline from Durban to Gauteng, which has eaten into fuel tanker demand.
He says there is no reason for truck operators and suppliers “to panic” about the resurgence of rail in South Africa as freight operator Transnet moves to reinvest in South Africa’s rail sector. He warns, however, that the market dynamics will change.
“We need to support that shift in transport logistics in South Africa when we do our planning.”
UDTSA expects South Africa’s heavy truck market to grow by 6.1% in 2013 over 2012, the medium truck market by 7.8% and the bus market by 5.3%.
The local arm of the Japanese truck brand is hopeful of a stable year in 2013, following on from its own sales contracting by 7.4% to 2 992 units in 2012. However, UDTSA ended the year as the country’s top truck exporter at 245 units.
Schulz believes that 2014 will be a stronger year for UDTSA, now part of the global Volvo group, as it will start the introduction of an entirely new product line-up, aimed especially at the value-plus market, through to 2017.
UDTSA MD Jacques Carelse adds that UD Trucks’ positioning within the Volvo group is as the “smart, modern, Japanese value brand”.
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