Note: Search is limited to the most recent 250 articles. To access earlier articles, click Advanced Search and set an earlier date range.
To search for a term containing the ‘&’ symbol, click Advanced Search and use the ‘search headings’ and/or ‘in first paragraph’ options.
Sponsored by
Please enter the email address that you used to subscribe on Engineering News. Your password will be sent to this address.
Sponsored by
separate emails by commas, maximum limit of 4 addresses
Sponsored by
Automaker notes industry decline, expands African footprint
Embed VideoPopup VideoInstagram
DownloadBuy Photos
20th November 2020
By: Mamaili Mamaila
Journalist
ARTICLE ENQUIRY SAVE THIS ARTICLE EMAIL THIS ARTICLE
Font size: –+
Global automotive company Isuzu Motors South Africa – a subsidiary of Isuzu Motors Limited – expects domestic vehicle sales to decline by around 30% this year, compared with those of 2019.
“Our D-MAX sales have performed better than expected, with our market share tracking at 16.6% in October to date. During August, we had the best Isuzu D-MAX August sales month in 14 years,” says Isuzu Motors South Africa CEO and MD Billy Tom.
In terms of trucks, the company’s share of the medium and heavy commercial market (excluding vans and buses) is tracking at 12.6% a year to date. Isuzu has led in this segment of the market for over seven years in a row and it plans to retain this position for 2020, he says.
Despite the impact of Covid-19 on other African markets, Isuzu has delivered a good sales performance in these markets, with an increase of 4% during the first ten months of this year, compared with the same period last year. In October, Isuzu sold the most D-MAX bakkies in the Zimbabwe market since the start of the year, accounting for about 20% share of the market.
Tom notes that Isuzu has also maintained its number one position in Kenya, to which it exports semi-knocked down bakkies.
“Isuzu is optimally positioned in Africa, as a result of its manufacturing facility in Kenya and its role in a joint venture manufacturing operation in Egypt, as well as its strong base in South Africa.
“Couple this with an expansive network of 112 dealers across Africa and it is clear that we have the right structure to grow in Africa. The only area where we need to establish a stronger presence is in West Africa, and we are working on a plan to address this,” he tells Engineering News.
Outlook
The most recent example of a significant market downturn was during the 2008/09 global financial crisis, during which the market declined owing to a global downturn.
Currently, however, the global economy has been halted and is being subjected to ongoing changes and interruptions, depending on the various Covid-19 containment measures, Tom says.
“This is a very different situation, which means that, in the short to medium term, we should expect that vehicle exports will remain under significant pressure and that market recovery plans will remain unpredictable.”
Similarly, domestic vehicle sales will continue to be under immense pressure for the foreseeable future, with the economy expected to contract by up to 8% by the end of this year. Considering the current local and global economic environments, 2021 is likely going to be a challenging year for vehicle sales, adds Tom.
Meanwhile, South Africa currently lags behind the rest of the developed world in the global drive to reduce carbon emissions and adopt more environment-friendly vehicle options.
Key issues impeding the adoption of electric vehicles locally include the lack of charging infrastructure, as well as the limited range and premium selling price of these vehicles, he says.
Therefore, to develop a local supplier industry that supports electric component manufacturing, the demand for electric vehicles would need to achieve significant sales volumes which would make this a viable option.
“Ultimately, to enable this, government will first need to provide incentives to offset the duty penalties of completely built-up vehicles to help create demand.”
Further, towards the end of last year, Isuzu Motors Japan committed R1.2-billion to investment in the next-generation bakkie programme in South Africa.
Despite the complexities which Covid-19 has caused, project teams from Japan, Thailand and South Africa have continued to work full steam ahead on this project, with a priority focus on engineering the vehicle to meet the requirements of the company’s customers in the Africa markets and also in terms of increasing localisation opportunities.
“Covid-19, as expected, has disrupted the operations of most businesses globally, including that of Isuzu’s global supply chain. To this end, we are working closely with our local and international suppliers to ensure that the appropriate mitigation plans are in place to support the updated timeline for our next-generation D-MAX programme,” Tom highlights.
The strength of the Isuzu brand came to the fore with the Isuzu D-MAX winning the online 2020 Zimbabwean Car of the Year Award, he concludes.
Manufacturer wins big amid continued uncertainty
The Eastern Cape Exporters Club recently awarded the 2020 Best Exporter Original-Equipment Manufacturer Merit Award to global automotive company Isuzu Motors Limited for overcoming obstacles.
“This is testament to the tenacity, resilience and agility of the Isuzu team to find solutions to challenges,” Isuzu Motors South Africa CEO and MD Billy Tom tells Engineering News.
Isuzu was also the joint winner in the business category of the Herald 2020 Citizen of the Year Awards. This award recognises the instrumental role the company has played in providing critical support for frontline workers in dealing with the Covid-19 pandemic.
Key initiatives in this regard included the undertaking of renovations to local hospitals to create an additional 160 hospital beds in just eight days, as well as the handling of centralised logistics and the distribution of medical supplies for local hospitals.
“Earlier this year, we also achieved an industry-leading Level 1 on our broad-based black economic-empowerment scorecard.This can be ascribed to our belief that transformation is critical towards ensuring the sustainability of our business; it is also a tangible reflection of our commitment to being part of the transformation of our country,” he emphasises.
Isuzu was also runner-up in the Cars.co.za Brand ofthe Year category in 2019.
“This is quite a remarkable achievement, considering that we do not have any passenger vehicles in our portfolio offering.Also in the Cars.co.za awards, Isuzu won the award for having the best sales people,” Tom highlights.
Edited by: Zandile Mavuso
Creamer Media Senior Deputy Editor: Features
EMAIL THIS ARTICLE SAVE THIS ARTICLE ARTICLE ENQUIRY
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
Engineering News is a product of Creamer Media.
www.creamermedia.co.za
Other Creamer Media Products include:
Mining WeeklyResearch Channel Africa
Polity
Sign up for our FREE daily email newsletter
Receive daily sector news alerts
We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.
Subscriptions are available via the Creamer Media Store.
Advertising on Engineering News is an effective way to build and consolidate a company’s profile among clients and prospective clients. Email advertising@creamermedia.co.za