Following audited confirmation that its May, 2013 performance was indeed the best in more than four years, the South African market for trucks, buses and vans with Gross Vehicle Mass ratings of more than 3 500 kg, took yet another step forward during the month of June. The total of 2 776 units reported to the National Association of Automobile Manufacturers of South Africa (NAAMSA), during the month just completed, improved on the May total by a margin of 3,5%, and set yet another new benchmark for monthly sales in the post-September 2008 period. With the first half of the year now completed, the margin of year-on-year aggregated market growth, when compared to the equivalent period in 2012, has now accellerated to 6,8% from the 6,2% recorded at the end of May.

As published, the June market composition was made up of 1 040 Medium Commercial Vehicles (GVM ratings between 3 501 kg and 8 500 kg), 497 Heavy Commercials (goods vehicles with GVM ratings between 8 501 kg and 16 500 kg), 1 143 Extra Heavy Commercials (goods vehicles with GVM ratings above 16 500 kg) and 96 passenger Buses with GVM ratings above 8 500 kg. This result for the entry-level MCV segment was the greatest volume recorded for any single month since June, 2008, and, in the case of the cruiserweight HCV grouping, the best since October, 2012. Premium payload EHCV sales continued to perform well, with the June result the second best recorded thus far in 2013, while Bus volumes recovered to more typical 2013 levels, after a muted result in May.

Dr. Casper Kruger, Vice President of Hino in South Africa, comments: "Given the concerns that have been widely expressed over conditions in the South African economy during the first half of 2013, together with continuing difficulties being experienced in some of our most important export markets, this outcome for the local truck market can only be described as extraordinary. The recent growth in MCV volumes, now running more than 10% ahead of their equivalent position at the end of June, 2012, is particularly notable, while both the HCV and EHCV segments have grown at rates well in excess of 6% in the same comparison. Bus sales, alone, have returned negative growth during the last six months, but prospects for this segment have recently improved with the announcement of several important BRT-related transactions, and promise to return to positive territory during the second half of the year".

Kruger continues: "Although there have been some signs that the slide in Rand foreign exchange values may be slowing down, the recent announcement of a steep increase in local fuel prices, despite the stabilisation of the international oil price, still presents a serious short-term challenge to the transport community, and provides strong rationale for updating fleet technology with the latest in products and management systems. It has also become apparent that, despite the difficulties being experienced in our traditonal overseas export markets, business between South Africa and its neighbours north of our borders in Africa has been expanding rapidly, and this has undoubtedly added a measure of weight to the local demand for commercial vehicles".

"Kruger concludes: "It is also possible that there may be some element of pre-buy currently present in the market, with operators pulling their procurement forward to avoid the full impact of vehicle price increases stemming from the recent decline of the Rand versus the US Dollar, Chinese Yuan and Euro. However, the relative performance of the local currency, since the beginning of this year, against other important commercial vehicle sourcing currencies, such as the Brazilian Real and, particularly, the Japanese Yen, has been considerably stronger, with important implications for the competitive balance within the market. If the pre-buy theory turns out to be valid, however, monthly volumes may soften somewhat during the second half of the year, making the 29 000 unit final market total outcome that has recently seemed likely, more difficult to achieve. The reported results of the months immediately ahead will, therefore, be very important in determining the ultimate magnitude of the 2013 truck market."

Ends