INDUSTRY NEWS
Truck sales seen picking up after dire 2016
Fixed investment is expected to grow 2.2%, which will benefit the commercial vehicle market, says Rory Schulz of UD Trucks
The South African commercial vehicle market is expected to grow marginally by an estimated 3% during 2017 to about 28,998 units. This is according to a market analysis presented by Rory Schulz, MD of UD Trucks Southern Africa. "When you consider the fixed investment rate is expected to grow by about 2.2% in 2017, it is a good indicator companies will invest in new assets like trucks. In addition, a slight increase in the GDP is also expected — all which should have a more positive impact on the local truck industry," explains Schulz. Other factors that could have a negative impact on the commercial vehicle industry are ongoing political tension, the persistent risk of credit rating downgrades as well as an expected increase in taxes set to erode real purchasing power. At the end of 2016 total truck sales were down by 11.4% to 27,010 units compared with 2015’s results, according to the results published by the National Association of Automobile Manufacturers of SA (Naamsa). "This is ...
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