Capital Equipment News February 2019

Scania Finance takes a prudent and ethical approach to every deal, but believes there are ways and means to get around the traditional issues that have always hindered credit applications.

KEY NUMBERS 64 %

Scania Finance & Insurance Southern and East Africa’s penetration rate on new Scania truck sales in 2018

P E N E T RAT I ON RAT E

90 % 10 % 16. 5% R 5.3

The value of Scania Finance & Insurance Southern and East Africa’s current portfolio

- B I L L I ON CURR E N T PORT F O L I O

ultimate aim of maximising customer experience. A case in point is Scania Finance & Insurance Southern and East Africa, which has in recent years significantly grown its portfolio to be among the top three Scania finance institutions globally. New- ly-appointed managing director, Patrik Glas-Crommert, says Scania Finance & Insurance Southern and East Africa has been growing over the past few years, notably between 2014 to present, where the business has more than doubled its portfolio from R2,5-billion to about R5,3-billion. In 2018, Scania Finance & Insurance Southern and East Africa had a 64% pen- etration rate on new truck sales, which means almost two out of three new Sca- nia trucks sold were financed by Scania Finance. “The rate is very high. Compared with other Scania financial services markets globally, we are now among the top three in terms of our penetration rate,

The percentage of finance leases in Scania Finance’s portfolio

F I NANC E L E A S E S

The proportion of operating leases in Scania Finance’s portfolio

OP E RAT I NG L E A S E S

Scania South Africa’s current market share in the heavy duty truck industry

CURR E N T MARK E T SHAR E

if not No. 1,” explains Glas-Crommert, adding that on the bus side, the penetration rate is about 30% at this stage, with plenty room for further improvement. “The business has been growing over the past few years on the back of increased market share for Scania commercial vehicles – since 2012 Scania has grown its market share from 8% to 16,5%. We have since increased the penetration level and the next

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