Capital Equipment News December 2016

TRUCKING

To further increase its product range in different market segments, UD Trucks Southern Africa has launched three new additions to its Quester line.

balanced markets where we see greater opportunity is Kenya,” says Schulz. “We want to focus on Kenya in 2017 and we are busy with the process of changing our partner as we look to rebuild our business in the country.” Schulz is bullish about Kenya’s prospects. He believes that in the long term, the country has much potential from a volume perspective than South Africa. To make the most of the growth prospects, UD Trucks is considering setting up a knock- down (KD) assembly facility to offset the duty constraints in the country. “Kenyan volumes are good enough to support the investment that comes with the KD facility. Historically, Kenyan truck volumes have always hovered in the same range as South Africa, at about 20 000 to 25 000 units per year,” says Schulz. “It also saves as the hub to supply into Uganda and Tanzania because of the regional trade agreements between those countries.” UD Trucks Southern Africa is responsible for 18 countries in the region. While South Africa is a 27 000 unit market at its best, the balance of the market between the rest of the other 17 markets is about 30 000 units a year, according to Schulz. Brand focus The Volvo Group has adopted a new strategy that will see its truck brands – Volvo Trucks, UD Trucks and Renault – work independently in the market. UD Trucks

MARKET TO DECLINE -10% IN 2016

SEGMENT

2016 YTD

2015 YTD

GROWTH

LD

6912 4573

8434 4550

-18.0% 0.5% -9.9% 16.9% -9.8%

MD

HD

10050

11156

BUS

1058

905

TOTAL

22593

25045

MEDIUM DUTY TRUCK YTD

2016 Oct

YTD

MAKE ISUZU

UNITS

MS % POS

UNITS

MS % POS

145 106

28.9% 1 21.2% 2 11.0% 4 14.2% 3 7.8% 5 5.4% 6 3.4% 8 5.0% 7 1.2% 10 2.0% 9 0.0% 11 0.0% 11

1270

27.8% 1 18.6% 2 16.8% 3 13.4% 4

UD

849 766 612 375 282 183 157

HINO FAW TATA

55 71 39 27 17 25

8.2% 6.2% 4.0% 3.4% 1.3% 0.4% 0.0% 0.0%

5 6 7 8 9

MERCEDES

FUSO MAN IVECO

6

60 17

VOLKSWAGEN 10

10 11 11

DAF

0 0

1 1

POWERSTAR

believes that the Brand Focus strategy gives the company the room to take control of its own destiny. “Under the new Brand Focus strategy, each brand within the Volvo Group should thrive on its own merits,”

says Schulz. “It goes back to the way we were previously structured, and that gives us ample room to drive the brand.” To further increase its product range in different market segments, UD Trucks

CAPITAL EQUIPMENT NEWS DECEMBER 2016 25