Aug

Heavy commercials only bright spot in July performance

2015-08-06 10:48
UD Trucks claimed the top spot in the Heavy Commercial Vehicle segment in July with a 27% market share.

The growth in the Heavy Commercial Vehicle segment was the only bright spot in the performance of the South African truck market during July. Sales in this segment has grown 4.4% so far this year to 3 045 units, with UD Trucks once again claiming the top spot with a 27% market share.

According to the July sales results released by the National Association of Automobile Manufacturers of South Africa (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD), the SA commercial vehicle market recorded a 4.7% decline in sales year-to-date, totalling 16 938 units.

The bus segment reported a second successive month of decline on the back of a year and a half period of consecutive growth due to the implementation of various Bus Rapid Transport (BRT) projects.  Sales were 5.6% down on a year-to-date basis, bringing 2015’s total to 640 units so far.

Although both Extra Heavy Commercial Vehicles (EHCVs) and Medium Commercial Vehicles (MCVs) showed some improvements on June’s sales performance, both are still lagging behind in year-on-year sales.

EHCV sales have declined by 7.1% when compared to the same period from 2014, to 7 505 units.  Sales in the MCV segment were 5.8% down on a year-to-date basis to 5 748 units.

“The market remains under immense pressure,” says Rory Schulz, managing director of UD Trucks Southern Africa.  “On the positive side, there are some visible signs of stabilisation with a slight improvement in the month-on-month rate of decline.”

Schulz says that the outlook for the remainder of the year remains rather negative as factors such as a low business confidence and slow economic growth within South Africa are continuing to put a damper on commercial vehicle sales.

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