Truck sales growth to slow – UD Trucks

The potential implementation of electronic tolling, or e-tolling, on Gauteng roads and its impact on the operating costs of transport companies was one of several factors that would affectË<º` kenny.marshallà£äí<íøíÿÿԝ impact on truck sales this year, UD Trucks Southern Africa chief executive Johan Richards said yesterdayË<³÷ adriaan.debeer¦êw9œ·Â"µÿÿ°(™?(wed)Roy CokayneThe potential implementation of electronic tolling on Gauteng roads and its impact on the operating costs of transport companies was one of several factors that would impact on truck sales this year, said Johan Richards, chief executive of UD Trucks Southern Africa, yesterday (wed).Richards said business confidence would continue to be a key indictor of the health of the domestic truck market this year and external influences, such as the Eurozone crisis, were also continuing to have a negative impact on local economic growth, including job creation, exports and subsequently truck sales.He added that TransnetÕs recent purchase of 143 new locomotives and the announcement of a new R17bn rail route through Swaziland was expected to slowly start impacting sales of extra heavy commercial vehicles as these new projects were implemented.Richards said oil supply and pricing always impacted the local economy and the only question was the extent to which it would affect South African truck sales and the costs of transport operators.He said they believed long haul vehicles would be used to maximum capacity and the construction industry should improve considerably this year.UD Trucks SA is forecasting growth by the domestic truck market of 12.3 percent to 29 358 units this year, which represents a decline in the 17.4 percent growth in truck sales achieved last year.However, Richards stressed the growth truck sales last year were inflated considerably last year by the market coming off a low base in 2010.ÒDespite several negative factors that could possibly affect the market over the medium to long term, the 2011 sales results showed the market still has a lot going for it,Ó he said.Figures released by the National Association of Automobile Manufacturers of South Africa (Naamsa) last week revealed the extra heavy commercial vehicle segment with a year-on-year growth in sales of 35.4 percent to 11 503 units was the star performer in the truck market last year.Medium commercial vehicle sales increased by 15.3 percent to 8 713 units while heavy commercial vehicle sales grew by 5.7 percent to 4 664 units.Bus sales, which were boosted in 2010 by the FIFA World Cup, predictably declined by 37.6 percent to 971 units.UD Trucks SA increased its year-on-year sales by 27.67 percent to 3 234 units last year to retain its third position in the domestic market with a 12.5 percent market share.Richards said UD Trucks remained the countryÕs top truck exporter last year, exporting a total of 244 units into Africa.The total number of truck exported from South Africa last year declined year-on-year by 6.5 percent last year to 861 units.However, Richards foresees a very good year in African export countries this year after a rather sluggish market last year provided the Eurozone debt crisis remained stable.UD Trucks SA is forecasting the South African medium commercial vehicle segment to grow by 11.13 percent to 9 812 units, the heavy commercial vehicle segment by 17.95 percent to 5 525 units and the extra heavy commercial vehicle segment by 10.96 percent to 12 932 units.Sales by the bus segment were expected to improve this year by 10.45 percent to 1 089 units.UD Trucks SA expects its sales to grow by almost 24 percent to about 4 000 units this year and will be launching a new generation Quon Extra Heavy range during the year.. Source