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T
he South African commercial
vehicle market has faced several
cycles of ups and downs in
2016. According to Rory Schulz,
marketing director of UD Trucks
Southern Africa, the market has mostly been
under pressure throughout the year, with
sales continuing to decline mainly due to
challenging local macroeconomic conditions.
Lower GDP growth, low commodity prices
and severe drought impacting sales into
agriculture, forestry and fisheries industries,
have weighed in heavily on truck sales.
As a result, the market is projected to
decline -10% in 2016 compared with 2015
figures. This is a second consecutive
year of decline following the -3,2% in
2015 compared with 2014 sales figures.
Meanwhile, export markets are also in
a difficult space with resource-driven
countries such as Angola and Zambia
bearing the brunt of the low oil and mineral
commodity prices, while markets such as
Mozambique, Ethiopia and Zimbabwe are
still suffering a lack of foreign currency.
Focus areas
Despite the difficult market terrain, UD
Trucks is determined to further expand and
grow its business in southern and eastern
Africa. “We have great expectations for the
future within the region and are confident
that we will continue to be successful as
we have been over the past five decades,”
says Jacques Michel, president of Group
Trucks Asia Sales. The company believes the
starting point for its envisaged growth is to
further expand its current dedicated network
of 62 dealers across the region.
Michel believes that strong customer
support as well as parts and service
solutions will be key in the company’s next
growth phase. “It’s easy to sell a truck the
first time around, but for a customer to
return for the second unit, you need reliable
and competitive support, and this is where
an expanded UD Trucks dealer network
makes all the difference,” says Michel.
“It is about building mutually beneficial
relationships and having the right truck and
the right services for the right application for
our customers to be profitable.”
A key focus market for UD Trucks outside
South Africa is Kenya. “One of the more
GAINING TRACTION IN DIFFICULT
TERRAIN
In the face of current difficult economic conditions and a declining commercial
vehicle market, UD Trucks Southern Africa has bold plans to expand and grow its
business in southern and eastern Africa, writes
Munesu Shoko.
“It’s easy to sell a truck the first time around, but for a
customer to return for the second unit, you need reliable
and competitive support, and this is where an expanded
UD Trucks dealer network makes all the difference.”
UD Trucks recently launched its Quester
range in Ethiopia, which will also be
introduced in several other markets in
southern and eastern Africa in 2017.
CAPITAL EQUIPMENT NEWS
DECEMBER 2016
24