Frans Cloete Growth Quotations

If a substantial proportion of the 80 000 Taxi Recap vehicles due for delivery over the next five years is to be reported in the MCV segment, we could be in for even more spectacular growth in the overall over-3 500 kg GVM market.

While the MCV return equals the second-best ever monthly result for this segment achieved in May 2005, it was only 40 units below the outright record of 1 216 units set in June, and sustains the tremendous growth spurt being exhibited by this vehicle classification. In their own right, the HCV and EHCV segment results both set new records for these categories since NAAMSA redefined its truck market segmentation parameters at the beginning of 2004.

Ever since the turn of the Millennium, we have experienced consistent, and sometimes spectacular growth across our market. Even the difficult period experienced with the foreign exchange value of the Rand in the second half of 2001, with its push-on affect in the interest rate arena, did not reverse the trend, and now that we have experienced more than three years of currency robustness, price stability and a positive financing scenario, the results can speak for themselves.

The even spread of the growth across these groupings is pleasing evidence that fleet expansion and renewal in the industry is wide-based, after a period in which these activities had been heavily biased towards the heavier end of the market.

The year 2005 was truly memorable for participants in the South African truck market. Sales volumes have consistently edged ahead of the most optimistic initial forecasts, and once the trend of strong growth had been established early in the year, the market consistently delivered near-record monthly performances. As it turned out, the year-on-year growth of 31,7% recorded this year completely eclipsed the 27,5% achievement which had, understandably, excited participants at the end of 2004.