Predictions that the South African market for extra-heavy duty vehicles would show growth in a tough environment in 2013 are being realised.

Sydney Soundy, head of Vehicle and Asset Finance at Standard Bank, says, “Sales for January to September 2013 totalled a respectable 9 706 new units for vehicles with a mass of more than 8 500kg. This was an increase of 866 vehicles from the same period in 2012.”

“The sales achieved were in line with the predictions of some of the country’s major suppliers of these vehicles. The sentiment was that, while 2013 would present some challenges, the heavy truck market had weathered recent recessionary conditions and would continue to do so, despite increased competition within the transport sector.”

Adding that direct foreign investment in South Africa and countries north of the border, along with government spending on infrastructure development locally, played their part in driving sales.

Kathy Bell, Transport Industry Specialist in Vehicle and Asset Finance at Standard Bank, states, “Funding opportunities for extra-heavy vehicle sales were created in the energy sector, with contractors committed to major projects at sites for new power stations making the required investment in abnormal trailers, extra-heavy truck-tractors and equipment. The lead times of these and similar infrastructure projects should bolster sales for the foreseeable future.”

The major drivers for extra-heavy vehicle sales as seen this year is mainly replacement cycles kicking in along with a need for more fuel efficient truck-tractors and lighter trailer combination units and reduced maintenance costs associated with a new fleet. The increased kilometre span for newer trucks has reduced the down time and has also resulted in increased productivity and revenue generation.

On the back of these and other developments in the local and regional economy, several manufacturers had announced that they would be introducing new vehicles and purpose-built equipment, such as tipper-tanker trailers, to the market. This would open new niche markets for manufacturers who would be able to offer customers customised and purpose-built vehicles for various applications.