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Wednesday, September 10, 2014

SA trucks sales losing traction

Buses in South Africa have to work even harder than this bus
in Afghanistan, as they are carrying commercial vehicle sales. 

SOUTH Africa sold 2 805 trucks in August, with sales driven mostly by extra heavy commercial vehicles and buses — a 8,43% rise on July’s sales.
By comparison, Australian truck dealers sold 2 552 new units, 136 more than they did in August 2013, according to new data published by the Truck Industry Council (TIC).
While buses and extra heavies drove sales, the remaining commercial vehicles sectors continue to lose traction, as shown in latest combined results released by the National Association of Automobile Manufacturers of South Africa (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD).
Rory Schulz, acting managing director of UD Trucks southern Africa, said that the overall year-to-date sales figures remain flat, with a marginal sales increase of 14 units. “We don’t expect it to grow much more, with challenging economic conditions expected to remain.”
When compared to August 2013, the Medium Commercial Vehicle segment declined by 5,57% to 984 units. On this basis, Heavy Commercial Vehicles gained some ground with an increase in sales of 13,39% to 508 units, while the extra heavies were down year-on-year by 3,21% to 1 205 units. Bus sales were also down last month by 8,47% to 108 units.
“The year-to-date decline of MCVs and HCVs, which mainly consists of units transporting freight and fast-moving consumer goods, is indicative of the challenging economic conditions faced by consumers, said Schulz, adding above-inflation vehicle price increases will further dampen truck sales momentum.

Down Under

(Photo: Greenprophet.com)
Australia’s sales were up on August 2013’s total of 19 567, but like South Africa, truck sales lag overall performance in 2013.
“August truck sales results reflect the broader economy with some areas doing well while others are static or in decline,” TIC CEO Tony McMullen said in a statement.
“Business confidence is patchy and this is reflected in capital investment expenditure at present.”

McMullen said August’s good result could be a first sign of a more widespread upswing.