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MB Vans MD forecasts flat market for 2014

Nicolette Lambrechts

The new V-Class

11th August 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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The 2014 South African van market will probably end the year flat compared with 2013, says Mercedes-Benz Vans South Africa  (MB Vans SA) MD Nicolette Lambrechts.

All new vehicle markets are under pressure, with the exception of the extra-heavy truck segment, which has managed to show growth year-to-date.

The local large van market numbers around 4 500 units a year, while the mid-size van segment, which includes the Toyota Quantum, popular in the minibus taxi market, stands at around 20 000 units a year.

South Africa has a rather diminutive van market, with Mercedes-Benz Vans South Africa being ranked by Daimler as number 22 in the world out of 25. 

MB Vans SA competes in the large van segment with the Sprinter, and in the mid-size van segment with the Vito and Viano.

The Sprinter is typically used in the long-distance taxi, tourism and emergency vehicle markets, with the Viano minibus finding its niche in the luxury hotel and private buyer market.

The Vito has a mix of commercial and private buyers.

Around 60% of Sprinter sales are into the minibus taxi market.

Trepidation and caution are currently rife among van buyers in South Africa, owing to poor economic growth, continued labour action and increasing interest rates, says Lambrechts, with customers postponing the purchase of new vehicles.

“Van buyers are very price-sensitive,” she adds.

MB Vans SA is not having the best of years in the van market, mirroring the trend seen in South African new vehicle sales in general.

Ford and Nissan have also entered the local van market, offering consumers more choice.

MB Vans SA van sales reached 3 325 units in 2012, inching up to 3 326 units in 2013.

Sales for the first seven months of this year have reached 1 667 units.

Following an aggressive start at the beginning of the year to the van market in general, sales have cooled down since March, says Lambrechts.

MB Vans SA has to fight the effect of a weak rand versus the Euro, reflected in rising prices on its van products.

“This means we have to sell our products differently. We have to focus on the benefits we can offer throughout the entire value chain, on our real offer, and not just price,” says Lambrechts.

“We must also cultivate the relationships we have built with our customers. We can learn a lot from our truck colleagues.”

MB Vans SA will have two new products on its showroom floor next year.

The Viano will be replaced by the new V-Class in the second quarter of next year. The newcomer offers several interior similarities to the new C-Class and S-Class passenger vehicles.

“It has the look and feel of a passenger car,” notes Lambrechts. “We will sell it as the S-Class of vans.”

Around 90% of Vianos are sold through MB Vans SA’s passenger car dealer network.

The V-Class will be followed by the introduction of a new Vito, also in the second quarter of 2015.

 

Edited by Creamer Media Reporter

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