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GMSA starts production of Isuzu pick-ups for left-hand-drive African markets

IAN NICHOLLS  The one-ton pick-up market is very competitive in Africa and in South Africa

IAN NICHOLLS The one-ton pick-up market is very competitive in Africa and in South Africa

6th September 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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General Motors South Africa (GMSA) has started production of left-hand-drive Isuzu pick-ups at its Port Elizabeth plant.

GMSA operations VP Ian Nicholls says the bakkie is set for introduction into left-hand-drive sub-Saharan African markets in the fourth quarter of this year. East African right-hand-drive markets will also receive the new Isuzu during this period.

Nicholls regards Angola, Nigeria, Ghana, Madagascar and Ethiopia as some of GMSA’s key left-hand-drive Isuzu markets.

South-East African right-hand drive markets, as well as Mauritius, have already received their shipments.

GMSA is responsible for 46 sub-Saharan African markets.

Current Isuzu production is around 100 units a day, with the rest of GMSA plant production made up of Spark production, at 40 to 50 units a day, as well as Chevrolet Utility production, at roughly 100 units a day.

The Spark is not exported, with the Utility currently also finding its way to Kenya.

That said, however, production at the GMSA plant has been disrupted by an industrywide wage strike, which saw production at all seven vehicle manufacturers grind to a halt in August.

Nicholls says the one-ton pick-up market “is very competitive” –in Africa and in South Africa – with Nissan, Toyota and Ford all working to conquer the African bakkie market.

Chinese bakkies are also increasingly making their presence felt.

Most African markets vary in their product demands, notes Nicholls.

South Africans increasingly favour automatic models. In some African markets, safety features are not important, but a premium is placed on air-conditioning. Diesel models are popular all over Africa, but not in Nigeria, where petrol is heavily subsidised.

“Most of our exports into Africa are diesel,” says Nicholls. “Quality of fuel is an issue, but the Isuzu engine can cope with the grades of fuel available.”

Out of a 80 000-unit vehicle market in Kenya in 2012, only 13 000 vehicles were new.

As Africa continues to be flushed with grey imports – imported second-hand vehicles not supported by the manufacturer – the power of service and parts backup will have to convert the continent’s consumers to new vehicles – and, more specifically, a new Isuzu, says Nicholls.

GMSA dispatches parts to its 65 African dealers from a parts warehouse in the Eastern Cape, with orders placed online.

GMSA exported 1 000 units into Africa last year, with Nicholls willing to say only that Isuzu export sales are expected to “grow significantly” this year.

As for South African sales, GMSA will see a slowdown from 2012, largely on the back of a tough first quarter, as the previous Isuzu came to the end of its life cycle, and a lack of stock availability on some models, says Nicholls.

He expects the total South African new- vehicle market to grow by 4% in 2013.

With few positive economic indicators for 2014, however, Nicholls anticipates a flat market next year.

GMSA will launch a new Opel product this month, to be followed by a new Chevrolet product. Next year also promises a number of new Chevrolet models.

In order to remain competitive in the growing budget car market, GMSA is also planning some variations to the Spark model.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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