UD Trucks expects the total truck sales to increase by 4.93% during 2014 to reach an expected 32 550 units.  This forecast includes an increase in sales across all the segments:

Segment              Growth                  Forecast 2014

MCV                      4.96%                    12 200

HCV                       5.57%                    5 800

EHCV                     4.98%                    13 500

Bus                         0.38%                    1 050

Total                      4.93%                    32 550*

*Includes Naamsa, AMH and AAD.

According to Rory Schulz, general manager of corporate planning and marketing at UD Trucks Southern Africa, the country’s failure to generate faster growth is problematic and could cause some significant challenges for the local truck market in 2014.

Schultz says, “Gross Fixed Capital Formation or GFCF, the new value that is added to the economy, is set to increase slightly during 2014 with the main gains coming from several construction and infrastructural projects. Government’s New Development Plan, although met with mixed reactions, has also now for the first time been included in the state budget and bodes well for the development of a number of the Strategic Infrastructure Projects or SIPs identified by government.”

The SIPs include 18 projects ranging from geographically-focused developments, to social infrastructure, knowledge, water and sanitation.  Most of these projects require heavy involvement by the transport industry, which could once again have a positive impact on the potential growth of the market.

Concludes Schultz, “While we expect interest rates to remain basically unchanged during 2014, one also has to consider the impact of the national elections and labour on the performance of the country’s economy.”