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Hino prepares for 25 000-unit market, introduction of truck speed limiters

20th April 2016

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Following a poor first quarter, Hino South Africa (SA) has adjusted its forecast for the South African truck market down from 28 000 units, as predicted at the beginning of the year, to 25 000 units, says Hino SA VP Ernie Trautmann.

The local truck market reached 30 611 units in 2015.

Hino SA sold 4 094 units in 2015, and is hoping for 4 010 unit sales in 2016, despite a domestic market expected to shed 5 000 units.

“We want a 14.3% share,” says Trautmann.

However, he concedes that Hino SA sales will probably, more realistically, reach around 3 700 units in 2016, in a domestic economy battling strong headwinds.

Trautmann says there are three reasons for the drop in sales seen to date in the South African truck market. Customers are running their trucks for longer before replacing them; truck body builders have slowed their output as they gear their businesses for a shrinking market and many truck operators are struggling to secure vehicle finance.

Hino, which is a member of the Toyota South Africa Motors (TSAM) group, has responded to the latter challenge by increasing the number of sales financed by TSAM’s in-house division, Toyota Financial Services South Africa, from 18% of sales in 2014, to 25% in 2015.

TSAM sales and marketing senior VP Calvyn Hamman believes South African truck companies without in-house finance solutions will find it tough going in the next five to ten years.

“You need to control your own destiny.”

In-house financing also allows Trautmann and his team some creativity in terms of payback terms, such as once-a-year payments for a farmer instead of 12 payments every month.

Looking to the remainder of the year, Trautmann expects the South African medium-heavy commercial vehicle (MCV) market to reach 9 600 units in 2016, down from 10 488 units in 2015.

The heavy commercial vehicle (HCV) market will drop from 5 599 units to 4 800 units, with the extra-heavy commercial vehicle (XHCV) market expected to decline from 13 405 units to 12 600 units.

Hino sales in the MCV segment are forecast to drop from 2 470 units in 2015 to 2 360 units in 2016, with HCV sales to decline from 1 165 units to 1 110 units, and XHCV sales to grow from 453 units to 500 units.

Hino SA aims to enter the formal used truck market in 2017, adds Trautmann.

The company will also start training around 15 young people as truck salespeople, in a one-year programme run from the company’s Johannesburg head office.

“Around 70% of our salespeople are between 55 and 65,” notes Trautmann.

ABS, Speed Limiters to Become Law
New legislation requires trucks to feature antilock braking systems (ABS) from December 1.

This will see Hino add ABS to its Dyna and 500 truck ranges over the next few months.

As from January 1, HCV and XHCV trucks will have to have 80 km/h speed limiters installed, with MCV trucks to be fitted with 100 km/h speed limiters.

Hamman says the Durban-built Quantum minibus taxi will also have to be fitted with speed limiters.

The limiters will all be factory-fitted and tamperproof, which means it will not be a mechanical limiter, but an electronic limiter.

Apart from the expected safety advantages, operators should also see significant fuel savings.

Edited by Creamer Media Reporter

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