Despite the overall new vehicle sales market being under pressure, we noticed that Mercedes-Benz Vans sales were actually up in 2015…

NL: On the large vans side there was a very small increase in the market last year. It was really a tough start to the year for everybody. The sentiment last year, which we see continuing this year from fleet operators and customers, is that they would rather keep their vehicles and run them a bit longer than go into their normal replacement cycles, due to some uncertainties they feel in the economy.

In the mid-size van segment, we saw a huge decline in the market. We had a run-out of the previous Vito and Viano before we introduced the V-Class and new Vito. We contributed to the decline in that market because there were a couple of months where we did not have products.

How have sales fared in the SADC region?

We look after Namibia and Botswana and we’ve seen good growth in the latter with regards to Mercedes-Benz Sprinters and the taxi/people-mover segment. Those are doing exceptionally well; they have a very good growth rate. We’re currently targeting the used vans market. We don’t really have a feel for those markets yet or that customer base. We know there is an opportunity there and are working very hard with the general dealers to establish what the right products for those markets are and how we can provide better services to our customers in those different markets.

What industries are driving sales of your vans?

On the Sprinter side, about 60% of our volume is in the long-distance taxi market. That is where we have a very stable customer base and a very good relationship with the taxi associations. We are predominantly in the people transport business, so a lot of tourism in the Cape. In terms of the panel van business, we are really focusing on the corporate fleet customer base – that’s where we see potential and growth – and we are trying to get into the courier distribution segment with Sprinter.

The company has indicated it wants to offer 41 Mercedes-Benz models locally by 2020. Would this include new van derivatives?

Before the end of the decade, we will, if all goes according to plan, launch the new Mercedes-Benz bakkie in South Africa, which will form part of the vans portfolio. It’s very exciting! A lot of work still needs to be done, but we’re looking forward to that.

How do after-sales products like Charterway and Fleetboard fit into the van offerings?

We have Charterway available on all the vans. The V-Class is 100% aligned to the passenger car portfolio, with Premium Drive and the full maintenance plan offering. On Vito and Sprinter models, we now have standards across the model ranges – an integrated service plan – which is a first in the industry. Our customers can, at any time, buy up into a full maintenance plan with Charterway. So we offer all the different packages on Charterway. Fleetboard is available on Sprinter; we have two customers running tests now with Fleetboard. Functionality is not at the same level as on trucks; the data you can get from the Fleetboard system on a Sprinter is not at the same technical level at the moment. So there is still development that needs to happen on that. A lot of the Sprinter customers use their own fleet maintenance programmes and systems.

What is the message/feedback your customers in the courier industry are giving you?

We haven’t heard that they want more technology in the vehicles. A big driver, of course, is reliability, safety and fuel consumption. Fuel consumption is always a big topic in the courier/distribution segments. We’ve seen also that the total costs – from the maintenance of the vehicles to parts pricing – all of the stuff that contributes to the total lifecycle cost is quite a big influence.

Is there any need for – or likelihood of – a hybrid Sprinter model appearing in this market?

Not at the moment. There is a lot of research and development happening in Stuttgart regarding hybrid and/or electric technologies/alternative energy vehicles for Sprinter. And there is a big drive on vehicle connectivity. On V-Class, a lot of work is being done to align it more towards passenger cars with Mercedes-ME technology.

What about an autonomous van?

I don’t think the vans division and autonomous development is quite at the same level as the cars and trucks. That being said, a lot of work is being done by the engineers in Germany from a Daimler perspective, so watch this space…