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Past Issues
August 1999

New Status for Bakkies

Given the current economic situation of South African consumers, one would expect the small entry level passenger type vehicles to far surpass the sales of bakkies. Not so! According to Naamsa statistics, Delta's KB range achieved unit sales of 1 338 in July this year compared to the Corsa's 1 023 units. This reflects an overall surge in bakkie sales which would seem to indicate that no longer can the so-called workhorse bakkie still be regarded as only a workhorse. FleetWatch correspondent, Danie Botha, pulses the market and concludes that the popularity of the bakkie opens new opportunities for transport operators to rationalise their fleets.

Recent research conducted by Nissan indicates that three distinct target markets for bakkie owners exists. They are workhorses, dual usage vehicles and leisure vehicles.

Workhorse bakkie owners - into which category many transport companies would fall - buy their bakkie as a business tool and the purchase decision is mainly based on rational considerations. Reliability, economical running and maintenance costs as well as resale value are therefore important factors. Diesel powered vehicles are popular buys in this segment.

The dual users require the same heavy-duty workability but as the vehicle is also used for leisure and private purposes, aspects like styling, excitement and comfort come to the fore. Aspects like fuel efficiency, low maintenance cost and reliability remain important but emotive considerations also play a major role.

Leisure buyers, on the other hand, would like to perceive their bakkies as powerful workhorses but are unlikely to ever test this perception. Styling, comfort and driving enjoyment are major considerations. While rational factors are considered, this is not done to the extent of the workhorse buyers. With the leisure vehicle buyer, it’s more like buying a passenger vehicle.

It's no wonder that Craig von Essen, SAMCOR’s marketing director, says much has changed since the original bakkie was launched in South Africa.

"The original bakkies were purely bought and used as workhorses but that changed with the advent of double cab bakkies. After the double cabs proved to be hugely successful, the single cab models also followed suite with more luxury appointments and macho styling. Today we find a new breed of customer from the old bakkie buyer who is prepared to substitute his traditional passenger vehicle with a similarly priced bakkie. It’s all about a buying into a different lifestyle," says von Essen.

Delta’s manager of corporate affairs, Derek Maltby, agrees that the role of the bakkie has changed significantly over the past few years – and will continue to change.

"The market for luxury double cab bakkies is booming. Nowadays you have double cabs that ride and handle as well as your average passenger vehicle and are fitted with all the luxury accessories. We believe this trend will continue unabated into the next millennium. We are also seeing that fleet operators account for ever increasing sales in the entry-level bakkie market. We believe this trend will also continue and grow even stronger in future," says Maltby.

According to Francois Loubser, Toyota South Africa's director of marketing communication, the most significant point in the evolution of the light pick-up market came in 1969 when Toyota introduced the first Hilux to South Africa.

"Up until then the choice was fairly limited and generally consisted of larger 6-cylinder and V8 powered vehicles derived from North American or Australian models. Since its launch, more than half a million Hilux bakkies have been sold," says Loubser.

Interesting to note is that according to Loubser, corporate users, large fleet owners and government departments are still the biggest customers. "About one third of Hilux sales are generated in the fleet market with close to another 25% purchased by the agricultural sector. Small businesses and government sales typically account for a third of all sales and private buyers the remaining nine per cent. Common requirements in all of these sectors are value for money, reliability, durability, low overall operating costs, and an excellent load carrying ability," says Loubser.

Meanwhile a wave of new bakkies and intensive marketing activity has hit us as the leading manufacturers battle for market share in the South African economic climate. It’s an ever intensifying battle with Nissan’s Hardbody range - consisting of 17 models - and DaimlerChrysler’s latest Colt, consisting of 12 variants, recently launched to take on the big guns.

The Colt range now also includes diesel variants, with the 2,8-litre turbodiesel engine borrowed from the Mitsubishi Pajero and fitted to the Colt now being the most powerful powerplant fitted to a bakkie in South Africa. This move from Colt was imminent, with Naamsa recently reporting that up to 60% of new one-ton bakkies sold in SA are diesel powered. And, with the ever increasing fuel price taken into consideration, the newer and more refined generation of diesel engines that are now available should see the 60% share grow even bigger.

Marketing manager for DaimlerChrysler’s Honda/Colt division, Guy Franken, believes that the light commercial vehicle (LCV) market has been more predictable than the passenger car market, mainly because it follows the business cycles closely. "Increasing interest rates, inflation and fuel costs affect the passenger car market more immediately than the LCV market. This is due to the fact that the LCV and bakkie market are mostly business and agricultural based purchases," says Franken.

Nissan South Africa’s new Hardbody is being marketed as a range with versatile applications. The standard Hardbody is the thoroughbred workhorse with specifications and features focusing on practicality and affordability. With the SL version, Nissan recognises that many bakkies are used as both workhorse and leisure vehicles. The exterior styling and interior comfort and feature levels satisfy the leisure requirements, while it still remains the ultimate workhorse. Topping the range is the four highline Double Cabs, all with SE specification and available with the 3000i V6 and 3200 Diesel engines, with a choice between two- and four-wheel drive.

Johan Kleynhans, Nissan South Africa’s director of group affairs and communication, is confident about the future of the new Hardbody in southern Africa. "We believe that the new range will propel us from the current 17,5 per cent of the local LCV market to 20 per cent in the foreseeable future," he says.

What all this boils down too is that the bakkie has undergone a major metamorphosis. No longer is the baseline bakkie an uncomfortable, ugly square piece of metal that is only good enough to haul large objects around. Even the entry-level "workhorse" bakkies now feature car-like ride and handling.

Which brings us to the role of the bakkie as mode of transport in day to day circumstances. No longer can the so-called workhorse bakkie still be regarded as only a workhorse. Companies who run car allowance schemes can now offer their employees the choice of purchasing a bakkie as a viable alternative to the traditional sedan, hatch or whatever the employee would have normally opted for. Maybe it’s time to change the traditional term 'car allowance scheme' to something like 'vehicle allowance scheme'.

The bottom line for transport companies is to realise that while the bakkie has been taken for granted in the past, a new era has dawned that will force bakkies to fall under the same degree of management scrutiny as are the bigger rigs?

There are also some great opportunities in terms of rationalising the fleet by purchasing a dual purpose business/leisure bakkie for those in the company who require a car to get them to and from work and a bakkie to do their work. Fleet operators can undoubtedly benefit from the elevated status of the traditional bakkie now that these vehicles are able to serve dual purposes. Think about it!

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