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Citroën SA enters taxi market; aims to sell 1 000 minibuses in 2013

26th March 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Citroën South Africa (CSA) announced on Monday that it was entering the South African minibus taxi market, after what it said had been a “lengthy period spent researching this important segment and setting up a strategy to become a significant player with a range of 15-, 16- and 19-seater Relay buses”.

“We are already encouraged with our success in the 2012 government tender and have, to date, supplied 45 diesel-engined 16- and 19-seater minibuses to government agencies, including the South African Police Service, Legal Aid and Water Affairs,” said CSA national fleet and business-to-business manager Khyl Reddy.

“We are expecting to sell many more vehicles via the government tender and are aiming to sell about 1 000 minibuses in South Africa this year.”

Reddy added that the local arm of the French manufacturer was
“not rushing into” what it knew was a complicated segment of the market, but believed that the company “had done its homework and was ready to put its plans into action.”

Relay panel vans are manufactured in Italy and then shipped to Citroën, in France, which in turn exports them to South Africa. Bustruck Conversions converts them according to the local regulations for minibus taxis by fitting windows, strengthened floors, seat belts, seats and radios.

All models have airbags for the driver and front passenger.

The 15- and 16-seater models are powered by 2.2-litre engines, while the 19-seater is fitted with a 3-litre power unit.

The 15-seater has a five-speed manual gearbox, with a 6-speed transmission fitted to the 16- and 19-seater models.

Prices range from R305 900 for the 15-seater to R369 900 for the long-haul 19-seater.

The 16-seater is priced at R315 900.

All models have a five-year/100 000 km service plan with a three-year/100 000 km warranty. Servicing is required every 20 000 km.

The three Citroën Relay minibuses have been homologated by the South African Bureau of Standards and been evaluated by the Independent Transport Advisory Service (ITAS), on behalf of the South African National Taxi Council.

The minibuses are currently in the process of receiving a scoring on the ITAS evaluation, which is supported by the Council for Scientific and Industrial Research.

A number of 16-seater vehicles with fuel-saving stop-start technology will arrive in South Africa in the second quarter of 2013 for evaluation by the taxi industry on short-haul routes.

The fuel-saving stop-start facility will be an optional extra, at a cost of about R5 000.

“We will provide special training on this system, which not only cuts fuel usage, but also harmful emissions, so it has major environmental benefits and is a first for a minibus taxi in South Africa,” said Reddy.

CSA has linked up with Taxi Choice as a finance and insurance provider.

It is also offering its vehicles through the Rent 2 Own programme which is operated by Absa Bank. The taxi Rent 2 Own Company allows the buyer to finance the vehicle at lower interest rates and lower insurance premiums.

This programme requires the fitment of tracking and monitoring systems and Reddy and her team are looking to tie up a deal for a system that incorporates a cell phone.

Timing for this project is the second quarter of this year.

All Citroën dealers, of which there are currently 20 nationwide – with plans to grow this to 30 in 2014 – have service facilities that can accommodate the Relay.

Dealers are backed by a warehouse in Gauteng that covers 8 500 m2 in area and holds stock valued at R38-million.

Parts are delivered up to four times a day to Gauteng dealers and within 24 hours to other areas.

Edited by Creamer Media Reporter

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