Capital Equipment News October 2021

trends during the pandemic, many customers who would normally buy new trucks are now considering buying low- mileage used vehicles. “The industry driver at the moment is predominantly stock availability, as good used trucks are in very high demand,” he says. Van Rooyen says Daimler Trucks & Buses Southern Africa has seen an increase in sales to larger fleet and corporate customers. “Many customers’ financials are under pressure due to the negative impact of COVID-19 and, with financial institutions implementing more stringent requirements, customers often turn to the used vehicle market as an alternative.” Southern Africa has seen an increase in salaried and private customers applying for finance, and large fleets diversifying their vehicle fleets. “This indicates a need for risk distribution,” she says. “Customers are also seeking more flexible finance options including payment holidays and lease options instead of outright purchase. This will give them flexibility in respect of their financial obligations and limit risk caused by the uncertain economic environment.” Adapted business models In terms of changes to business models in response to the pandemic, Van Rooyen says Daimler Trucks & Buses’ TruckStore division is being “more proactive” in terms of building strong customer relationships, and works closely with its new-vehicle sales division to ensure that customer expectations are met. “This helps to keep clients’ fleets on the road,” she says. “Tailoring transactions to meet our customers’ demand and requirements is our top priority. Ensuring that the products we offer are superior has given us as a competitive advantage which we believe will sustain us through this challenging period.” Despite the challenges posed by the pandemic, the company is expanding its used vehicle business even further. TruckStore will soon be located across South Africa and be incorporated into key areas of growth potential. “This is a clear indication that we not only believe in our TruckStore brand which has grown successfully over the last few years, but that we also believe that our products and new-vehicle sales support will bring us closer to our customers,” says Van Rooyen. b Customer profile She says Daimler Trucks & Buses

During the pandemic, many customers who would normally buy new trucks are turning to low- mileage used vehicles.

QUICK TAKE

A reduction in stockholding for new trucks is directly affecting the supply of trade-ins to the used truck market

With most manufacturers experiencing stock shortages due to various external factors caused by the pandemic, the demand for used vehicles has increased over the last year and a half

Export sales have declined since the pandemic started due to border closures and other travel restrictions

Many customers who would normally buy new trucks are now considering buying low-mileage used vehicles

“With financial institutions implementing more stringent requirements, customers often turn to the used vehicle market as an alternative.”

Annelie van Rooyen, head of Daimler Trucks & Buses Southern Africa’s TruckStore division

TALKING POINT

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