Truck market gains more ground

The August truck market improved by 5.3% on July’s performance to conclude on 2 227 units, according to results released by the National Association of Automobile Manufacturers of South Africa (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD).

During this period, medium commercial vehicle (MCV) sales increased by 5.9% to 633 units, heavy commercial vehicle (HCV) sales were slightly down by 0.7% to 427 units and extra heavy commercial vehicles (EHCV) up by 7.3% to 1 046 units. Bus sales also continued their upward trend with a 9% improvement on July’s sales to 121 units.

The overall picture is looking more positive with year-to-date sales tracking only 2.9% behind 2016’s sales in the corresponding period, with a total of 17 075 new trucks sold by the end of August.

“These results are encouraging and in line with our expectation that some industry sectors are recovering,” says Gert Swanepoel, MD of UD Trucks Southern Africa. “It has also become evident that business continues to show resilience in the face of some of the bigger macroeconomic challenges that are prevailing.”

Swanepoel says the company believes many businesses still have long-term confidence in the country, which bodes well for new truck sales during the balance of the year, and for some growth going forward.

“An investment in a new truck is a serious consideration, as it takes a significant amount of money, time and other resources to run a fleet efficiently and profitably. This past month’s positive results show us that fleet owners still consider the transport and related industries as relatively sure investments,” says Swanepoel.