| Past
Issues |
February
2005 |
The road is
always challenging
The positive growth of the truck market needs to be put into perspective which brings us to the question: How much of the growth is due to increased economic activity and how much is due to the replacement of the 12 year plus vehicle parc?
These questions will make for interesting studies but in the meantime, we must gear up for 2005. Based on our trusty barometer of Gross Fixed Capital Formation and low interest rates, we can expect the market to grow in 2005 to around the 23 000 units. Support structures such as the body building industry, will have a tough task to keep up with the demand.
January sales were out of the blocks like a rocket, recording 1 501 sales - some 394 units ahead of January 2004. It is interesting to note that the sale of diesel fuel was also up by 5.1% from 2003 to 2004. This is usually an indication that the growth can mainly be attributed to economic activity rather than the replacement buying taking place.
Wider issues
In terms of the wider issues facing the industry, cleaner diesel remains on the agenda of the local industry. With the imminent Gazetting of the new emission regulation for MCVs and HCVs, newly homologated vehicles will have to comply with Euro II or the alternative USA 78 and Japan 98 levels. All vehicles produced need to comply with this level by 2010. It is important to note that the new cleaner diesel can be used on older products without any detrimental consequences.
On the new diesel front, we will see the introduction of 500ppm low sulphur diesel in 2006, with 50ppm available on a selective basis. Naamsa, Sapia and other bodies are also currently working on the standards for bio-diesel, as well as determining ways of going forward with the new technology.
Image of industry
FleetWatch asked what, in our opinion, is serving to tarnish the image of this industry thus preventing it from reaching its rightful position of respectability in the eyes of all South Africans? In a nutshell, the major contributors to the industry's tarnished image are the slow-moving, smoking trucks on our roads. However, the truck industry is undertaking several initiatives, especially at operator level, to improve the image of this vital industry. Self-regulation ideas along the lines of NOSA are currently under consideration by many operators.
As new vehicles are bought and the replacement cycle speeds up, we will see great improvements in the industry as a whole. Initiatives to speed up this process such as improved fuel economy and efficiency, as well as tax rebates, may go some way to assist. We at Nissan Diesel believe that all in all, the truck industry is on a strong foundation at the beginning of 2005.
Implement law enforcement
In terms of what legislation is outdated and irrelevant - if any - and what new legislation should be introduced to cater for changing circumstances, we believe that while it is a tough industry with high levels of competition, the road ahead is always going to be challenging. We believe there are already sufficient regulations in place but that effective and knowledgeable law enforcement must be looked at and implemented. This will negate any wasted time and money for both the truck industry and the justice system. We would also like to see that vehicles be licensed according to their GVM rather than tare mass to speed up and clarify the current registration and licensing process.
As to whether more truck components and trailers be made with lightweight materials like aluminium and Comdex, it is our opinion that as we move forward into a world that demands improved efficiencies and curtailed cost, all new and improved - as well as proven - technology will play a vital role in providing a better service to the community. Should the law enforcement of overloading become enhanced and operators also apply self-regulatory methodology, the need to increase payload will have to come from lighter materials. This decision, however, will always have to be weighed up against the cost.
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FRANS CLOETE...
industries on a good foundation
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We look forward to another challenging, dynamic year and wish everyone involved in the truck industry the best for 2005.
By Frans Cloete
Senior Vice President, Operations
Nissan Diesel SA
