UD Trucks

Truck Sales Shine in February

28 February 2011 | Print

The South African truck market showed year-on-year growth of 27.25% in February, totalling 2 237 units and thereby substantiating earlier industry forecasts of a strong performance during the second month of the year.

The South African truck market showed year-on-year growth of 27.25% in February, totalling 2 237 units and thereby substantiating earlier industry forecasts of a strong performance during the second month of the year.

 According to Johan Richards, chief executive of UD Trucks Southern Africa, if the market is to reach the estimated 25 187 unit mark at the end of the year, it needs to sustain sales at over 2 000 units during the months to come.

 “We are anticipating a strong sales month in March, a slight dip in April and then another turnaround leading up to July, so the prospects for another growth year are certainly looking promising,” said Richards.  “According to the current market cycles, we are also expecting strong growth during the second half of the year leading up to 2012.”

 The success of the market during February can largely be attributed to the improved availability of finance at the various retail banks, as well as increased availability of stock across the board.  Business confidence is also remaining positive, as do most of the leading indicators, and this should all contribute to the continued growth of the market for the remainder of the year.

 Medium Commercial Vehicles’ year-on-year results increased by a significant 43.05% to 844 units, while sales in the Heavy Commercial Vehicle Segment grew by 21.45% to 385 units.  Sales in the Extra Heavy Commercial Vehicle segment were up by 40.12% to 936 units.  Understandably, post Soccer World Cup Bus sales are down by 60.66% to 72 units when compared to February 2010’s results.

 “With the Soccer World Cup a thing of the past, we believe there will be a lot of investment by government in infrastructure such as roads in the coming months, both on a national and regional level.  As a result, the transport sector will see a lot of growth in, for example, the transport of coal, as well as in public transport,” said Richards. 

 During the course of the year, inflation is also expected to have an impact on the market with the introduction of the electronic toll gate system, higher fuel and food prices, as well as the expected 25% increase in electricity costs.

 Richards said that one major development, namely the possible introduction of a green tax on heavy vehicles, could also hamper the growth rate of the market.

 “With more positive than negative prospects on the horizon, and with replacement cycles currently normalising, the industry will once again experience some healthy growth in truck sales during the remainder of 2011,” said Richards.


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