Capital Equipment News April 2017

• 8 645 TOTAL UNIT SALES • -18% DECLINE VERSUS 2015

remain flat this year, with slight growth if there is stability in the exchange rate of the Rand versus the major currencies. “It is my opinion that it will still be a challenging year. We see the market as being flat, with no major increase,” says Griffin. However, he adds that there is some general positivity that the market will slightly rebound this year. Hyundai Automotive SA, armed with a number of key service initiatives – such as the 1 year / 60 000 km service plan; 3 year / unlimited mileage warranty; and 3 year / 200 000 km roadside assistance – expects to significantly improve its sales volumes this year. This will be further buoyed by what Griffin refers to as “exciting future prospects on our doorstep”, in terms of new product offerings. Slow start Breitenbach notes that 2017 has started somewhat slowly. “We think it could be due to the lack of confidence in economic growth among our customers,” she says. However, she is also of the view that there will be a slight to moderate increase in LCV sales throughout the year, and she hopes for a steady upswing after September. JMC’s LCV range starts from bakkies to 3 t commercial trucks, with variants of van bodies, dropsides and tippers. The JMC Carrying SWB Lux – said to be the only truck in its class offering 1,6 t payload – is the company’s jewel in the crown in the LCV range. “For a limited time, we are including a R5 000 fuel voucher with the purchase of every model,” says Breitenbach. Ideal for builders, general construction contractors, plumbers, gas suppliers and painting contractors, the JMC range comes with a 5 year / 120 000 km standard warranty. “We have recently upgraded our warranty on the complete Carrying range to include free top up warranty. This, supported by a 3 year / 90 000 km service plan and 24 hour Roadside Assist, is surely a winning combination,” concludes Breitenbach. b

FUSO sold a total of 873 light duty trucks last year, representing a 10,1% share of the market.

Market Share – Light Duty

2016 Dec

2016

MAKE

UNITS

MS % POS

UNITS

MS % POS

HINO

148 245

20.8% 2 34.4% 1 11.9% 3 8.8% 5 10.8% 4 7.6% 6 1.5% 7 1.1% 9 1.5% 7 0.7% 10 0.7% 10 0.1% 12 0.0% 13 0.0% 13

2231 2131 1164

25.8% 1 24.7% 2 13.5% 3 10.1% 4 9.2% 5 6.9% 6 3.5% 7 2.4% 8 1.4% 9 1.2% 10 0.9% 11 0.3% 12 0.0% 13 0.0% 14

ISUZU

MERCEDES

85 63 77 54 11

FUSO

873 797 600 306 204 123 108

VOLKSWAGEN

IVECO

TATA

HYUNDAI

8

FORD

11

JMC

5 5 1

PEUGEOT

77 28

FIAT

CITROEN

3 0

UD TRUCKS

0

difficult for manufacturers to even price the vehicles correctly. The depreciating Rand also translated into higher prices for SMEs who were already in dire straits due to tough economic conditions. 2017 outlook The South African market is expected to remain flat in 2017, achieving a minimal growth of 3% at most, to around 28 998 unit sales. With fixed investment expected to grow to around 2,2%, up from -2,5% in 2016, Schulz believes this is a good indicator that companies will invest in new capital assets such as trucks. Schulz also believes the projected 1,5% GDP growth in 2017, up from 0,4% in 2016,

will further improve growth prospects for the local truck industry. This will be further buoyed by seemingly improving growth prospects premised on easing drought conditions in South Africa. “We also see an improvement in commodity prices and this will definitely help push up truck sales this year,” says Schulz. However, he reasons that ongoing political tensions, the incessant risk of further credit rating downgrades and an increase in taxes, which will definitely erode spending power for fleet owners, will likely have a negative impact on the performance of the South African commercial vehicle market this year. Griffin is of the view that the market will

CAPITAL EQUIPMENT NEWS APRIL 2017 19