November Performance Pushes Truck Market Past 2013’s Total Sales
06 December 2013 | Print
At the end of the third quarter of 2013, it has become clear that an increase in consumer spending on daily commodities and fast moving goods, are some of the key factors driving the growth in the South African truck market.
The 2 820 truck sales recorded during November pushed the industry’s year-to-date total to 28 538 units, a 12.57% increase on October’s sales. This positive result also means that the industry managed to surpass 2012’s total sales of 27 474 units in eleven months.
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).
“All segments within the commercial vehicle market increased sales on a month-to-month basis, continuing to surpass most industry forecasts,” said Jacques Carelse, managing director of UD Trucks Southern Africa. “It is interesting to note that the recent spate of industrial action as well as economic growth downgrading had little to no effect on the truck market.”
An average growth rate of around the 10% mark was maintained throughout the year, well above the 3% increase in sales predicted earlier in the year.
“Most of the truck sales now are driven by some aggressive replacement campaigns by fleet owners, as they gear up to meet the growing transport needs of a number of region-wide infrastructure developmental projects in the power generation, water and logistics, as well as mining sectors,” said Carelse. “During November, the purchasing managers’ index (PMI) also improved to 51.6, a further indication of the country’s improved economic growth in the fourth quarter.”
On a month-to-month basis, sales in the Medium Commercial Vehicle segment increased by 12.7% to 1 003 units, while the Heavy Commercial Vehicle segment saw an increase of 30.6% to 555 units. The Extra Heavy Commercial Vehicle segment experienced a slight improvement of 3.63% to conclude the month on 1 161 units. Bus sales also broke its downward trend with 101 sales – a significant improvement of 46.4%.
The rise in Bus sales can mainly be attributed to a number of Bus Rapid Transport tenders that have been concluded over the last couple of months, resulting in the good performance of this segment during November.
“With the year already showing an improved performance over 2012’s results, the units sold during the usually slower December holiday period are surely a bonus and will set the scene for the industry’s performance for the year to come,” concluded Carelse.