Capital Equipment News December 2016

UD Trucks recently launched its Quester range in Ethiopia, which will also be introduced in several other markets in southern and eastern Africa in 2017.

GAINING TRACTION IN DIFFICULT TERRAIN

In the face of current difficult economic conditions and a declining commercial vehicle market, UD Trucks Southern Africa has bold plans to expand and grow its business in southern and eastern Africa, writes Munesu Shoko.

T he South African commercial vehicle market has faced several cycles of ups and downs in 2016. According to Rory Schulz, marketing director of UD Trucks Southern Africa, the market has mostly been under pressure throughout the year, with sales continuing to decline mainly due to challenging local macroeconomic conditions. Lower GDP growth, low commodity prices and severe drought impacting sales into agriculture, forestry and fisheries industries, have weighed in heavily on truck sales. As a result, the market is projected to decline -10% in 2016 compared with 2015

Africa. “We have great expectations for the future within the region and are confident that we will continue to be successful as we have been over the past five decades,” says Jacques Michel, president of Group Trucks Asia Sales. The company believes the starting point for its envisaged growth is to further expand its current dedicated network of 62 dealers across the region. Michel believes that strong customer support as well as parts and service solutions will be key in the company’s next growth phase. “It’s easy to sell a truck the first time around, but for a customer to return for the second unit, you need reliable and competitive support, and this is where an expanded UD Trucks dealer network makes all the difference,” says Michel. “It is about building mutually beneficial relationships and having the right truck and the right services for the right application for our customers to be profitable.” A key focus market for UD Trucks outside South Africa is Kenya. “One of the more

figures. This is a second consecutive year of decline following the -3,2% in 2015 compared with 2014 sales figures. Meanwhile, export markets are also in a difficult space with resource-driven countries such as Angola and Zambia bearing the brunt of the low oil and mineral commodity prices, while markets such as Mozambique, Ethiopia and Zimbabwe are still suffering a lack of foreign currency. Focus areas Despite the difficult market terrain, UD Trucks is determined to further expand and grow its business in southern and eastern

“It’s easy to sell a truck the first time around, but for a customer to return for the second unit, you need reliable and competitive support, and this is where an expanded UD Trucks dealer network makes all the difference.”

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