Truck market shows positive growth for the first time in 2015
09 April 2015 | Print
March saw the recovery of the local commercial vehicle market with an 8% year-on-year growth and logging 3 092 sales during the month.
According to the latest combined year-to-date results released by the National Association of Automobile Manufacturers of South Africa (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD), the negative growth recorded in first two months of 2015 contributed to the 0.17% decrease in sales announced at the end of March.
“The truck market has continued to show resilience, in spite of difficult economic conditions,” said Rory Schulz, Managing Director of UD Trucks South Africa. “Looking at the market results from the first three months of 2015, the strong performance in the Heavy and Extra Heavy Commercial Vehicle segments are indicative of improving business confidence in South Africa.”
When compared to March 2014’s results, Medium Commercial Vehicles (MCVs) recorded an 8.77% growth to reach 1 104 units. However, on a year-to-date comparison with 2014, sales in this segment continued on a downward trend and declining by 7.76%.
The Heavy Commercial Vehicle (HCV) segment increased sales by a significant 19.18% when compared to March 2014’s results, reaching 578 units last month. In the same comparison, sales in the Extra Heavy Commercial Vehicle (EHCV) segment also increased, although at a lower rate of 3.49%, to conclude the month on 1 305 units. Bus sales continued on a positive note, recording a 2.94% growth in sales to 105 units.
“The outlook for the rest of the year remains moderate, with factors such as electricity supply, labour unrest and an expected interest rate hike in May, posing the biggest threat to further growth within the commercial vehicle market over the medium term,” said Schulz.