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Past Issues

February 2005

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IMS

 Partly Good, Partly Bad

The year 2004 was a great one for the commercial vehicle industry with some exceptional growth percentages being reported for the medium and extra heavy commercial vehicle sectors. We at IMS-I believe that growth of the market will be even greater in 2005 and predict a further growth of +10% on last year's figures, our reasons being:

1. Lack of door-to-door service from rail transport.

2. South Africa's vehicle parc is still, on average, 11 to 12 years old. The high cost of fuel and improved fuel efficiency from new engines will drive sales.

3. Maintenance costs and overall cost of ownership of old vehicles have become very high for fleet operators.

4. Low interest rates and favourable pricing due to the strength of the Rand will have a positive affect on truck sales.

5. General economic growth and the development of new mines and growth in the export of raw materials will also continue for 2005.

In the socio/political arena, several of our Southern African neighbours are suffering poor economic growth, a weakening of their monetary currencies and lack of foreign exchange to purchase new vehicles, hence an increase in cross-border transport by South African operators.

A major threat to our local transport industry remains the loss of skilled drivers to HIV and Aids. Although much has been done to fight this pandemic, much, much more is required to minimise the affect this is having on the industry.

Image of the industry
We feel that although many transport fleets are run and operated professionally, there are still too many fleet operators who do not seem to give a damn about vehicle condition, safety of all stakeholders, correct securing of loads and overloading. What we find absolutely alarming is how some truck and trailer OEMS actually accept - and condone - the abuse of their products in the hope of future sales with very little regard to the longevity of their vehicles and the well being and safety of other road uses and stake holders.

Reduction in tare mass
We believe this will be an ongoing challenge for vehicle manufactures and suppliers of products and system to the vehicle industry. However, all of this cannot be left only to the OEMS to improve the operator' return on investment. It is high time that fleet operators get paid better rates so that vehicles can be operated within the legal GVM limits thereby enhancing the ROI, reducing cost of ownership and improving safety for all.

Hilton Cathcart
Director Marketing and Sales, IMS-I