Capital Equipment News February 2018

COMMERCIAL VEHICLE MARKET

MARKET SHARE - HEAVY COMMERCIAL VEHICLES Make 2017 December

segment with a 19,53% share, up from 15% at the start of 2017, selling a total of 1 065 units during the year. UD Trucks was also the top performing Japanese manufacturer in the EHCV segment with a 9,24% share, coming in at position five overall, with 1 167 total unit sales. “We achieved a slight growth of 0,3% in this segment, while the total market grew at about 0,7% in this segment,” says Uys. Apart from new product launches, Swanepoel says the Volvo Group’s brand focus is paying dividends. “A brand- focused structure gives us the opportunity to bring back the UD brand to its rightful position in the market. All the areas of the group at large are also doing very well in their own right,” he says. Customer focus was a key success factor for the brand in 2017. Having ended 2016 on No 7 in the overall Customer Satisfaction Index, UD Trucks finished in third position in 2017. “We gained some extensive ground in the latest industry Customer Satisfaction Index,” says Sanjay Naipal, aftermarket director at UD Trucks Southern Africa, adding that the huge success factor was the parts supply. A healthy dealer supply network, said to be significantly improved than in 2016, helped push both the sales and aftermarket support. UD Trucks currently has a total of 32 dealers in South Africa offering sales, service and parts, as well as six dealers offering service and parts. “Across borders, we are represented in 14 countries, through 14 main dealers, with a total of 21 service sites,” says Naipal, adding that last year the company also trained 1 247 dealer and customer staff at its Competence Development Centre in Rossyln, including 92 diesel mechanic apprentices, said to be a highly sought-after skill in the transport industry. Another key initiative in 2017 was the R30 million investment in the modernisation of UD Trucks’ Rossyln assembly plant to mirror the company’s Ageo plant in Japan. “A lot of emphasis was placed on real estate, tooling and equipment, as well as acquiring new jigs, fixtures and implementing a new material supply system,” explains Aubrey Rambau, director of manufacturing at the UD Trucks Assembly Plant in Rossyln. 2018 outlook Swanepoel expects sales in the export countries to increase during 2018, predicting growth across all segments to a total of about 990 units. “In South Africa we are forecasting a slight 1,5% growth in sales during the year to come,

2017 YTD

Units

MS% POS 36.15% 1 21.54% 2 14.87% 3 5.90% 5 8.97% 4 4.87% 6 2.31% 8 3.33% 7 2.05% 9 0.00% 10 0.00% 10

Units 1 465 1 065

MS% POS 26.87% 1 19.53% 2 16.69% 3 13.94% 4 7.67% 5 6.95% 6 2.88% 7 2.71% 8 2.44% 9 0.20% 10 0.11% 11

Isuzu

141

UD Trucks

84 58 23 35 19

Hino FAW FUSO

910 760 418 379 157 148 133

Tata Truck & Bus

MAN

9

Mercedes

13

IVECO

8 0 0

Powerstar Volkswagen

11

6

UD Trucks gained some ground in the HCV segment in 2017, largely buoyed by the launch of its Croner range in June.

for a total truck market of an estimated 25 418 new units,” says Swanepoel. While South Africa is expected to see a slight 1,5% truck market growth across the MCV, HCV and EHCV segments, Schulz predicts that in the export markets the MCV market will see some 3,5% growth, while the HCV and EHCV segments will grow 4,6% and 5%, respectively. South Africa’s forecasted slight truck market growth will be largely impacted by the low GDP growth, predicted to be around 1,1% in 2018, up from the revised 0,9% for 2017. However, Schulz says improved business confidence, especially in light of the new political landscape following the ANC elective conference in December 2017, is encouraging. He is also encouraged by political developments in Zimbabwe, and expects the market to grow significantly this year, probably to reclaim its status as UD Trucks Southern Africa’s largest export market. Schulz says in late 2017, African economies showed promising signs of recovery, and this trend is expected to continue into 2018 for sub-Saharan

Africa and the continent at large. “Even though the growth is largely due to the improved commodity prices, the positive trend is also as a result of some countries focusing on funding projects that can support meaningful growth,” explains Schulz, adding that the forecasted regional economic growth is 4,2% for 2018. To gain more traction in the Eastern African markets, UD Trucks has since secured a new partner in Kenya to establish a Completely Knocked Down (CKD) assembly facility. “Due to local Kenyan regulations, a CKD plant is key to any success in the market. We already have a product plan in place for the market,” says Swanepoel. Schulz adds that UD will offer HCV and EHCV models in Kenya, based on the new models available. The company will also secure an MCV product in future for the Kenyan market. “We will probably end at 10 variants and that will give us about 80% coverage of the Kenyan market requirements in terms of product,” concludes Schulz. ❂

CAPITAL EQUIPMENT NEWS FEBRUARY 2018 22