Truck manufacturer sees growth in Africa

22nd November 2013

By: Anine Kilian

Contributing Editor Online

  

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Truck and bus manufacturer MAN registered substantial growth over the last 24 months in sub-Equatorial Africa, more than doubling its sales volumes since 2011, the company announced at the Johannesburg International Motor Show, which took place at the Nasrec Show Grounds last month.

MAN established its official centre sub-Equatorial Africa department four years ago, which currently incorporates 18 countries, including the island States of Mauritius, Seychelles, Comores, Mayotte and Reunion.

“We expect to sell 500 trucks and 100 buses by the end of this year. Our dealer network consists of 22 private-capital business partners for sales and service and is a key component of our growth strategy,” said MAN centre sub-Equatorial Africa head Shane Naidoo.

He added that, apart from strong brand awareness, assisted by MAN’s entrance into high-profile sub-Equatorial fleets, such as Kenya’s multiple hauliers, which field a 30% MAN fleet of 1 000 trucks, MAN’s after-sales division in the region is proving a pivotal expansion force in the organisation.

“Our own original-equipment manufacturer representation is driven by five MAN technical dealer support managers who engage in ongoing technical skills transfer programmes with our dealers, assisted by MAN Truck & Bus South Africa’s technical training and driver training academies,” said MAN sub-Equatorial Africa after-sales head Thomas Ferreira.

MAN sub-Equatorial Africa head Robert Clough noted that the construction sector was currently a primary growth market for the company.

“Foreign direct investment into the region for infrastructure development purposes is spurring demand for both our MAN TGS 33 series on- and off-road 6 × 4 rigids.

“These chassis cab derivatives are being fitted with tipper, mixer, flat-deck and water-tanker bodies,” he added.

He said that with two MAN and German car manufacturer Volkswagen assembly plants currently fully operational in Kenya, MAN is well positioned to capitalise on the cost benefits of being closer to India than South Africa.

“Our derivatives are shipped from Mumbai, in India, in completely knocked-down and completely built-up form, with certain completely built unit models arriving with truck bodies already fitted.

“These supply chain efficiencies enable us to offer our derivatives at between 15% to 30% cheaper than their South African counterparts,” he explained.

Another popular sub-Equatorial MAN derivative is the TGM 18.240 single rear-axle 4 × 4, which holds an 80% market share in the region, primarily as a construction vehicle, but also as a military truck.

“The Botswana Defence Force truck fleet comprises 99% MAN TGM 4 × 4s, following our recent winning of a Botswana government tender for 208 heavy-duty 4 × 4 rigid trucks,” stated Clough.

Steady economic growth in the region had also resulted in positive bus sales figures, said MAN centre sub-Equatorial Africa export sales manager Floyd Swartz.

“The MAN HB bus series is a strong mover in several passenger transit applications. The HB1 is used as a basic commuter bus, the HB2 as a municipal people carrier, the HB3 as a semi-luxury coach and the three-axle HB4 as a luxury intercity and cross-border coach,” he noted.

The MAN R40 is fitted with a full-luxury coach body and is finding favour with tour operators in Zambia, while the VW 91.50 16-35 seater midibus-minibus is being deployed as a semi-luxury commuter vehicle, according to the company.

Meanwhile, MAN introduced its first CLA bus chassis, the CLA 18.220 FE, a 4 × 2 40- to 65-seater commuter bus, which meets commuter bus specifications, in East Africa this year.

“The Kenya government is undertaking a minibus taxi recapitalisation programme and has ordered between 80 and 100 units for delivery in 2014. This will be a global first for MAN and we are looking forward to seeing the 18.220 assembled and bodied in Kenya,” said Swartz.

Encouraging as these developments were, doing business in Africa was not without its challenges, stated MAN centre sub-Equatorial Africa export parts and business development manager Andre Klassen.

“There are vast distances between our dealerships – from between 600 km to 1 000 km – and although our dealers have excellent breakdown recovery services, this can be problematic,” he stated, adding that a big plus factor for MAN was the company’s flying-in technicians from South Africa to ensure rapid response and repair turnaround times.

“We want to reduce the distances between dealerships by signing up new private-capital service dealers,” he said.

Another challenge for the MAN centre sub-Equatorial Africa team, noted Klassen, was the poor telecommunications infrastructure in the region.

“Landline communications are often dis-rupted and 3G roaming costs are exorbitant,” he added.

Klassen pointed out that, dropped calls and difficult roads aside, sub-Equatorial Africa is on the rise and MAN was poised to play a major part in the region’s economic ascendency, with the company’s sights set on shifting 1 000 units in 2015.

“It is encouraging to see that governments in the region are investing in broad-scale automotive skills development programmes.

“The simultaneous development of human capital, new roads and other logistics infra-structure in the region will create grow- ing demand for quality commercial vehicles. “This bodes well not only for the citizens of the region but also for all of us at MAN,” concluded Naidoo.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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