Despite the current financial downturn, commercial vehicle company Iveco South Africa is experiencing good sales and also has a range of new vehicles that will enter the South African market in the future, Iveco South Africa MD Eddy Chvatal tells Engineering News.

Iveco South Africa’s bus range is the company’s current best seller, with 277 units sold in 2008 and 320 sold this year. The company continues to experience good sales from its 3,5-t to 6,5-t Daily panel van range, as well as its heavy-duty, 480-hp Stralis range.

Where new products are concerned, the company intends to distribute its new European Daily vehicles early next year.

The Power Daily range, which was presented to the public at the Johannesburg International Motor Show, last year, is set for distribution in South Africa during the first quarter of 2010.

These 16- and 19-seater minibuses, available in both right- and left-hand drive, have met with great success in the Middle East and Northern Africa, says the company, and will also be distributed to South Africa’s neighbouring countries. The Power Daily is being manufactured in China as a joint venture 
between Nanjing Motor Company and Iveco, using European design and engineering.

While some companies regard Asian products with suspicion, Chvatal does not believe that all Asian products are unreliable. “The public needs to learn that a Chinese product does not necessarily equate to a cheap product. We have proof of that in the Power Daily range, which is not a cheap product, but is built to European standards, yet is less 
expensive,” he says.

Iveco South Africa does not view cheaper, 
less durable products in the industry as competition. “There has not been any significant loss in sales to these brands. There is room for cheaper products in this market, but they do not replace sophisticated products,” 
explains Chvatal.

Meanwhile, green products are growing in this industry, and Iveco South Africa reports they are very active in this sector. The company’s new Electric Daily prototype, based on a double cab Daily 55C, has been introduced in Brazil. This zero emission vehicle runs off recyclable, maintenance-free Zebra Z5 
sodium, nickel and chloride batteries. The suitability of using electricity to power this light commercial vehicle is being tested.

Still on the global front, Iveco has a number of commercial vehicles on offer that can be powered by compressed natural gas (CNG), such as its Eurocargo range (from 12 t to 16 t) 
and the Stralis range (from 18 t to 26 t). However, South Africa will have to wait for these vehicles to enter the local market, as CNG stations are not available in the country.

“Unfortunately, we cannot bring the 
sophisticated Euro 4- and Euro 5-compliant engines in the Iveco range to South Africa 
either, because the available fuel in the country is not compliant. Iveco is working hard to help change South Africa’s perspectives on pollution and to bring CNG-powered trucks and buses to the country.

“We need government and the oil industry to invest in changing plants to produce the right fuels. 
“Otherwise, the fuel will have to be 
imported, so that we can use more environmentally friendly engines,” says Chvatal.

He suspects that there will be significant changes to the use of biofuel, CNG and electric engines in South Africa, within the next seven to ten years.

Meanwhile, Chvatal says that the South African automotive industry sales have 
decreased by 48%, while Iveco South Africa has experienced a 42% decline in truck sales. Fortunately, the company has been sustained by the growth in the bus and the spare parts industries of 20% and 10%, respectively. This, reports the company, places them in second position for the sales of buses in South Africa.

Chvatal explains that the growth of spare parts is a welcome surprise, as entire fleets may be idle during a financial crisis, when vehicles are therefore not maintained. Iveco was, however, able to make good progress with its key accounts, as these companies could afford to repair their vehicles. He admits that while government is encouraging local manufacturers to avoid retrenchment, government also needs to encourage banks to relax their hold on credit, as this tight grip is financially crippling to many customers.

Chvatal says that after the recession, improvement will not come quickly for the automotive industry, “Iveco agrees with the National Association of Automobile Manufacturers of South Africa, that there will be an improvement from 7% to 10% in truck sales in 2010. We intend to set higher targets to cross the 5% overall market share and hope to reach above 15% in some segments,” he concludes.

To view a video clip in which IVECO MD Eddy Chvatal discusses market expectations and new company developments, go to www.engineeringnews.co.za, click on ‘Multimedia’ and then on ‘Video Clips’.