UD Trucks sees L-shaped recovery, no news on Isuzu tie-up

26th February 2021

By: Irma Venter

Creamer Media Senior Deputy Editor

     

Font size: - +

The South African new-truck market should see an L-shaped recovery from the Covid-19 pandemic, says UD Trucks Southern Africa (UDTSA) marketing and sales director Rory Schulz.

The combined medium, heavy and extra-heavy truck and bus market reached 22 736 units in 2020, down 19% from the 28 012 units recorded in the domestic market in 2019.

This meant the South African truck market had a better year than the rest of the new- vehicle market, with new-passenger-vehicle sales down 30.6% in 2020, and light-commercial-vehicle sales down 27.6%.

It seems, however, that the truck market could face a tougher 2021 than the rest of the market.

The National Association of Automobile Manufacturers of South Africa expects a 15% improvement in overall domestic new-vehicle sales in 2021.

However, UDTSA does not anticipate the same margin of improvement in the truck market.

“We are anticipating some growth,” says Schulz. “We expect to go into an L-shaped recovery where it will be a little bit slower.

“I think that, going into 2021, we’ll see single- digit growth on the back of people trying to ensure the recovery of their businesses.”

UDTSA MD Filip van den Heede says the truck maker has spoken to various fleet owners and customers.
“We see resilience and optimism in the market. Our best guess is that we would be extremely happy if we could keep the base of the second half of 2019 and maintain that over the year.”

This would mean growth in the domestic truck market of roughly 5% to 7%, notes Van den Heede.


In December 2019, the Volvo Group and Isuzu Motors signed a nonbinding memorandum of understanding with the intent to form a strategic alliance.

This was followed by a binding agreement in October last year.

This alliance between the Volvo Group and Isuzu Motors will see the transfer of ownership of the complete UD Trucks business from the Volvo Group to Isuzu Motors.

The transaction is expected to be completed during the first half of this year.

What does this deal mean for the Isuzu Trucks and UD Trucks businesses in South Africa?

Not much at the moment, says Van den Heede, with the process yet to reach the final stage.

“We are actually still competitors and, from a competition law perspective, we are not allowed to talk to each other. Only a very small team at the top of the organisation is able to do that.”


UDTSA has launched two new additions to its Croner range.

Schulz says UDTSA is expanding the range to improve the company’s offering in urban and inter-city distribution.

“In the very competitive 8 t to 9 t payload segment, we saw the need arise for a fuel- efficient, high-payload unit with good drivability at good value for money.

“With the new model introductions, we are improving payload, fuel efficiency and adding more driver comfort, as well as extending service intervals,” says Schulz.

“With UD Trucks Telematics Services as standard and a regionwide dealer network, fleet owners are supported no matter where they operate.”

The Croner LKE 210 freight carrier boasts a GH5, 5-litre engine and an Allison 2500 series automatic transmission.

The Croner 4 × 2 PKE 280 truck-tractor has a GH8, 8-litre engine and an Allison 3000 automatic transmission series, with similar emphasis on urban and city-to-city distribution, as well as focus on interregional haul.

In 2020, UD Trucks also introduced a Croner 6 × 2 PDE 280 freight carrier, which brings the variants in this range to 16 models.

UD Trucks’ Croner range is assembled at its plant in Rosslyn, Gauteng.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION