Truck Sales Still Growing Despite Slower August
15 September 2012 | Print
Sales results in the commercial vehicle industry took a slight downturn during August 2012. Compared to sales in August 2011, sales decreased by 1.76% to reach 2 271 units.
This is according to the latest combined results* released by the National Association of Automobile Manufacturers of South Africa (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD). *(Mercedes-Benz South Africa is only reporting aggregated sales data but Naamsa estimates based on historical trends and forecasting, are included here.)
Looking at the individual market segments, Medium Commercials increased by 11.8% compared to the same month last year, totalling 815 units. Sales in the Heavy Commercial Vehicle segment however decreased by 16% to 353 units, while the Extra Heavies also saw a decline in sales of 3.8% to reach 1 040 units during August. Bus sales continued its downward trend, declining by 22.2% to 63 units.
According the UD Trucks Southern Africa’s managing director, Jacques Carelse, the market is continuing to perform slightly below the anticipated rate.
“The market has grown steadily by 4.8% during 2012 with 18 566 units sold, and even though it is below our forecasted growth rate of 12%, we are still very positive about the market’s performance so far this year,” said Carelse. “We are anticipating the market to reach between 27 500 and 28 00 units, bar any major upset as a result of, for instance, the Eurozone crisis.”
Carelse said sales to the FMCG and Construction industries are continuing on its growth path, whilst the long haul segment has slowed slightly due to issues like the new fuel pipe line and some seasonality where fleets replace vehicles during the third quarter of the year.
“We are therefore expecting sales to pick up again from September through to December,” said Carelse.
He continued to say that government’s new preferential tendering policy for trucks made in South Africa is expected to impact the market over the medium to long term.
“The industry is also keenly awaiting the announcement of the new APDP guidelines for the truck and bus sector, as this will not only support the future of the industry, but also assist companies in making long-term investments in the country,” concluded Carelse.