While the South African truck market showed little to no growth in 2017, truck experts believe that things are expected to improve marginally in 2018.

The 2017 South African truck market declined by 2.65% on the previous year’s results to 25 042 new units sold according to the latest results released by the National Association of Automobile Manufacturers of South Africa (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD).

Lack of growth impacting the truck market

Things were not much better in the heavy commercial vehicle segment which showed a 4.76% decline. Similarly, sales in the medium commercial vehicle segment recorded a 6.37% decline to a final figure of 7 785 units at the end of 2017.

The extra heavy commercial vehicle segment recorded the only increase in sales year-on-year, by only 0.96%, concluding 2017 on 11 967 units.

According to Gert Swanepoel, managing director of UD Trucks Southern Africa, the lack of growth in the local economy has continued to negatively impact the local truck market.

“With recent political changes in mind, we are hopeful that business confidence will return to more positive levels, which will certainly encourage businesses to invest in their fleets,” says Swanepoel.

Gross Fixed Capital Formation looking up

Swanepoel adds that the rate at which businesses add fixed assets such as plant, machinery and equipment to their inventories, has seen an upturn to 4.3% during the third quarter of 2017, with 37% attributed to the acquisition of new transport equipment. “This is certainly a good sign for the truck industry.”

“We are expecting sales in the export countries to increase during 2018, forecasting growth across all segments for a total sales estimate of around 990 units,” he notes.

“Locally, we are forecasting a slight 1.5% growth in sales during the year to come, for a total truck market of an estimated 25 418 new units,” Swanepoel concludes.