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difficult for manufacturers to even price
the vehicles correctly. The depreciating
Rand also translated into higher prices for
SMEs who were already in dire straits due
to tough economic conditions.
2017 outlook
The South African market is expected to
remain flat in 2017, achieving a minimal
growth of 3% at most, to around 28 998
unit sales. With fixed investment expected
to grow to around 2,2%, up from -2,5%
in 2016, Schulz believes this is a good
indicator that companies will invest in new
capital assets such as trucks.
Schulz also believes the projected 1,5%
GDP growth in 2017, up from 0,4% in 2016,
will further improve growth prospects for
the local truck industry. This will be further
buoyed by seemingly improving growth
prospects premised on easing drought
conditions in South Africa. “We also see
an improvement in commodity prices and
this will definitely help push up truck sales
this year,” says Schulz.
However, he reasons that ongoing
political tensions, the incessant risk of
further credit rating downgrades and an
increase in taxes, which will definitely
erode spending power for fleet owners,
will likely have a negative impact on
the performance of the South African
commercial vehicle market this year.
Griffin is of the view that the market will
remain flat this year, with slight growth if
there is stability in the exchange rate of
the Rand versus the major currencies. “It is
my opinion that it will still be a challenging
year. We see the market as being flat, with
no major increase,” says Griffin.
However, he adds that there is some
general positivity that the market will slightly
rebound this year. Hyundai Automotive
SA, armed with a number of key service
initiatives – such as the 1 year / 60 000 km
service plan; 3 year / unlimited mileage
warranty; and 3 year / 200 000 km roadside
assistance – expects to significantly improve
its sales volumes this year. This will be
further buoyed by what Griffin refers to as
“exciting future prospects on our doorstep”,
in terms of new product offerings.
Slow start
Breitenbach notes that 2017 has started
somewhat slowly. “We think it could be
due to the lack of confidence in economic
growth among our customers,” she says.
However, she is also of the view that there
will be a slight to moderate increase in LCV
sales throughout the year, and she hopes
for a steady upswing after September.
JMC’s LCV range starts from bakkies to
3 t commercial trucks, with variants of van
bodies, dropsides and tippers. The JMC
Carrying SWB Lux – said to be the only
truck in its class offering 1,6 t payload – is
the company’s jewel in the crown in the LCV
range. “For a limited time, we are including
a R5 000 fuel voucher with the purchase of
every model,” says Breitenbach.
Ideal for builders, general construction
contractors, plumbers, gas suppliers
and painting contractors, the JMC range
comes with a 5 year / 120 000 km standard
warranty. “We have recently upgraded our
warranty on the complete Carrying range
to include free top up warranty. This,
supported by a 3 year / 90 000 km service
plan and 24 hour Roadside Assist, is
surely a winning combination,” concludes
Breitenbach.
b
MAKE
2016 Dec
2016
UNITS
MS % POS
UNITS
MS % POS
HINO
148
20.8% 2
2231
25.8% 1
ISUZU
245
34.4% 1
2131
24.7% 2
MERCEDES
85
11.9% 3
1164
13.5% 3
FUSO
63
8.8% 5
873
10.1% 4
VOLKSWAGEN
77
10.8% 4
797
9.2% 5
IVECO
54
7.6% 6
600
6.9% 6
TATA
11
1.5% 7
306
3.5% 7
HYUNDAI
8
1.1% 9
204
2.4% 8
FORD
11
1.5% 7
123
1.4% 9
JMC
5
0.7% 10
108
1.2% 10
PEUGEOT
5
0.7% 10
77
0.9% 11
FIAT
1
0.1% 12
28
0.3% 12
CITROEN
0.0% 13
3
0.0% 13
UD TRUCKS
0
0.0% 13
0
0.0% 14
FUSO sold a total of 873 light duty trucks last year, representing a 10,1% share of the market.
Market Share – Light Duty
• 8 645 TOTAL
UNIT SALES
• -18% DECLINE
VERSUS
2015
CAPITAL EQUIPMENT NEWS
APRIL 2017
19