14 January, 2014
2013 Truck Sales Defy Expectations, more Subdued Performance Forcasted for 2014
14 January 2014, Johannesburg.
The performance of the South African truck market surpassed all expectations
during 2013. Sales increased by 11.12%
on 2012's full-year results, reaching a noteworthy 30 936 units despite a
number of key challenges posted by the local political and economic
According to the 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 in commercial vehicle market, except for Buses, showed growth when
compared to 2012's results.
in the Medium Commercial Vehicle (MCV) segment increased by 14.66% to
11 585 units, while the Heavy Commercial Vehicle (HCV) segment showed a
9.94% growth to conclude the year on 5 477 units. The Extra Heavy Commercial Vehicle (EHCV) segment
experienced significant growth of 10.39%, selling 12 828 units during
Bus sales declined by 7.76% to 1 046 units mainly due to some timing
issues as the rollout of a number of key Bus Rapid Transport (BRT) projects has
Carelse, managing director of UD Trucks Southern Africa, said at the company's
annual press briefing yesterday that a number of growth factors drove 2013's
truck sales upwards.
Moving Consumer Goods and daily commodities were the main drivers of sales,
especially in the high volume MCV and HCV segments, contributing 55.01% to the
growth of the truck market during 2013," said Carelse. "Construction, even though it is
traditionally a low volume contributor to truck sales, experienced a very high
growth rate on the back of a number of Strategic Infrastructure Projects, and
made up 39.05% of the industry's growth last year."
transport segment that made a significant contribution was demanding long-haul
(29.82%), which is usually a high volume segment but faced some growth
challenges due to the improvement of the country's rail infrastructure and
capacity, as well as a slowdown in mining production. Improvements in waste collection and
recycling spurred sales in the waste and public utilities segment and contributed
14.78% to the truck market's growth.
facing a number of macroeconomic challenges that included a downgrade of the
country's GDP, the depreciation and volatility of the Rand and a slow economic recovery
in Europe, the South African truck market still managed to perform
exceptionally well," said Carelse.
year, a total of 1 202 trucks were exported by South African
manufacturers, an increase of 11.71% when compared to 2012's figures.
weaker Rand should raise demand for exports in the year to come as a weak
global demand is not allowing the currency to gain more value at this stage,"
said Carelse. "The weaker Rand will
also, of course, have a negative impact on truck prices and a number of
manufacturers are expected to announce price increases over the next few
2013, UD Trucks comfortably retained its fourth position in the market, and was
once again the top selling HCV brand with a 24.16% share of the market. The company also made significant inroads in
the EHCV segment, growing sales of its Quon range by 18.57% to capture an 8.76%
to Rory Schulz, general manager of corporate planning and marketing at UD
Trucks Southern Africa, the country's failure to generate faster growth is
problematic and could cause some significant challenges for the local truck
market in 2014.
Fixed Capital Formation or GFCF, the new value that is added to the economy, is
set to increase slightly during 2014 with the main gains coming from several
construction and infrastructural projects," said Schulz. "Government's New Development Plan, although
met with mixed reactions, has also now for the first time been included in the
state budget and bodes well for the development of a number of the Strategic
Infrastructure Projects or SIPs identified by government."
SIPs include 18 projects ranging from geographically-focused developments, to
social infrastructure, knowledge, water and sanitation. Most of these projects require heavy
involvement by the transport industry, which could once again have a positive
impact on the potential growth of the market.
we expect interest rates to remain basically unchanged during 2014, one also
has to consider the impact of the national elections and labour on the performance
of the country's economy," explained Schulz.
Trucks expects the total truck sales to increase by 4.93% during 2014 to reach
an expected 32 550 units. This
forecast includes an increase in sales across all the segments:
*Includes Naamsa, AMH and AAD.
UD Trucks in 2014
UD Trucks Southern Africa is
set for a ground-breaking era during the next five years. As one of the
country's leading truck manufacturers for the past 50 years, the company is
currently planning the introduction of game-changing new products and services
"The future plans of UD Trucks
are all about enhancing our customers' transport and service experience with
us," said Carelse. "We are committed to
supporting our customers in a smart and modern way, and going the extra mile in
everything we do."
As has always been the case,
UD Trucks will provide customers with transport solutions that offer the right
balance between features, cost and efficiency.
UD Trucks is also constantly
developing, strengthening and training its already comprehensive regional
dealer network. The 64 UD Trucks dealers
across southern and eastern Africa are always ready to support customers with
manufacturer-endorsed sales, service, parts, as well as financial and fleet
Represented all along the
major routes and trade corridors across the region, UD Trucks Southern Africa
is able to provide a speedy response, knowledgeable technical advice and
service, as well as ultimately dependable trucks that get the job done.
UD Trucks Southern Africa has
also invested more than R4.8 million over the past two years in the training of
its staff and members of the community in various developmental and training
"We passionately believe in
the vital importance of training and investing in the future of our employees
and surrounding community," said Carelse.
"The objective of the programme is to provide on-going developmental
opportunities that not only allow us as a company to achieve our business
objectives, but also to empower and contribute to the overall development of
the participating learners."
Contact: UD TRUCKS SOUTHERN AFRICA (PTY) LTD