Japanese commercial vehicles manufacturer UD Trucks had to contend with a tough year in 2021, with a number of global challenges, but still achieved solid growth and a number of successes, UD Trucks Southern Africa MD Filip Van den Heede said on February 1, during the company’s yearly conference.

He elaborated that some of these challenges included the ongoing Covid-19 pandemic, with the importance of personal health a big takeaway for the company from this.

The pandemic led to supply chain challenges, such as container shortages and aeroplanes not flying, which required the company to be flexible and adapt.

Pandemic-related lockdowns in Asia also impacted on the company’s supply base.

Van den Heede said that moving forward would require interventions such as building smarter logistics with a lower environmental impact and taking a value-based approach to managing supply chains.

In 2021, UD Trucks also had to manage high-capacity demand and changing customer demands, such as an increase in e-commerce and greater demand for same-day deliveries.

Despite this, and some setbacks, he said that, in terms of performance, the company saw growth of about 40% in terms of vehicles sold.

Moreover, he highlighted a steady recovery in parts sales, which he said indicated that people were holding on to their vehicles for longer.

On the service side, Van den Heede indicated that there had been very good development on total cost of ownership, with a high intake of service agreements for the company, which also helped customers keep their cost base controlled.

Other successes during 2021 included the launch of the Croner model, with uptake picking up well.

Moreover, Van den Heede said the company had been doing a lot of partner engagements, including in its African operations.

Van den Heede also touched on the company’s strategic alliance with Isuzu Motors.

Last year, UD Trucks was acquired by Isuzu from the Volvo Group, as part of the completion of the strategic alliance between Volvo and Isuzu.

One positive from the pandemic was that it had accelerated the automotive industry’s sustainability drive, Van den Heede said.

Last year, the company also announced its new Vision 2025 to become a Japanese sustainability leader, through which it aims to “Build a better life”.

Van den Heede said this vision materialised partly as a response to global shifts.

The vision encompasses four pillars, namely a lower environmental impact; becoming customer satisfaction leaders; providing the most desired place to work for employees; and providing the best-in-class performance.

The focus on sustainability has led UD Trucks to introduce Euro 5 trucks ahead of regulations in South Africa.

Van den Heede said the company was working on influencing the market in South Africa to encourage the uptake of Euro 5, through a number of small steps, with proper demand anticipated here in about five years.

Moreover, UD Trucks will expand its Euro 5 model range later this year with the addition of two new models, namely its Quester and Croner models, which will also become available in South Africa.

UD Trucks is also focusing on automation and connectivity.

The company has long invested in smart logistics solutions, outfitting its trucks with connected devices and safety features that can analyse data in real time to improve efficiency and safety.

Moreover, the use of the UD Telematics system can help customers monitor factors influencing the total cost of ownership of their fleet such as fuel consumption, vehicle health, vehicle location and driver behaviour, to identify areas for improvement.

Since 2021, first in the South African market, UD Trucks has offered telematics as standard on all new trucks sold.

The company is following a controlled process in terms of automation, with gradual steps aimed at improving safety, productivity and efficiency.

One example was its trucks with ESCOT automated manual transmission, with these having an automatic gear selection which is said to make driving easy for any driver while improving fuel efficiency

Other focus areas for the company this year include continuing to encourage vaccination and ensure the welfare of stakeholders.

In the business arena, the company is aiming for a positive growth outlook. It will invest in network expansion and transformation, continue to further its service agreements and also focus on telematics.