Truck group says dealing with supply challenges key to meeting sagrowth goals - bmw replacement keys
Hino South Africa aims to sell 5 000 trucks a year withinthe next four years, says Toyota South Africa Motors (TSAM) salesand marketing senior VP Calvyn Hamman . We are committed to this goal, he notes. Of course, it meanswe have to look at parts supply, our dealer network and productioncapacity. Hino SA forms part of TSAM and assembles trucks at Toyota s Durbanplant.
The local arm of the Japanese truck manufacturer sold about 3 400trucks in South Africa last year and aims to move to 3 600 unitsthis year, says Hino SA VP Dr Casper Kruger . This is below the original target, but reflects the lingeringeffects of the earth- quake and tsunami which hit Japan last year,disrupting global parts and truck-kits supply. Our medium-term plan was to sell more, says Kruger, but, froma supply point of view, things are not a hundred per cent. We arestill battling to get free SKD (semi-knock-down) supply, especiallyin the 300 and 500 ranges. Hino trucks are assembled in South Africa from SKD kits importedfrom Japan.
Kruger says reaching 5 000 unit sales a year will be a hugechallenge for Hino SA. He says the company hopes to reach thisgoal by increasing its participation in more segments of the marketthan what is currently the case. These include the heavy commercialand extra-heavy commercial vehicle markets. The new 300 series, forexample, also still lacks a 4 4 version.
We can add a lot of volume by adding more scope to our productrange. Increasing our volumes will come through filling gaps in themarket, says Kruger. Every year from now on, we will have a replacement product or anew introduction coming into South Africa. Introducing new ranges into the country will, however, mean thatthe assembly line at the Hino plant will have to be recon- figured,says Kruger.
We are busy planning for this expansion. We can do a double shiftand make the numbers happen. Looking at the general truck market, Kruger expects a much moresubdued year than the 16% and 21% growth achieved over the past twoyears respectively. He expects growth of 3.5% to 5% for the 2012 financial year on the26 700 units sold in South Africa last year. However, despite thissingle digit, a 28 000-unit market will still be the fourth-biggest truck market in South African history.
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Kruger says several economic factors are expected to somewhatweaken the local truck market going forward, includ- ing upgradesto South Africa s rail infrastructure. Some tanker operators have reported that they have tankers out ofwork due to the new fuel pipeline that has opened. The upgradedrail network will also see more cars transported by train. Kruger also expects truck prices to increase if the rand continuesto depreciate, following two years of small or no increases. Thismay affect Japanese manufacturers more than those from Europe orthe US.
The local arm of the Japanese truck manufacturer sold about 3 400trucks in South Africa last year and aims to move to 3 600 unitsthis year, says Hino SA VP Dr Casper Kruger . This is below the original target, but reflects the lingeringeffects of the earth- quake and tsunami which hit Japan last year,disrupting global parts and truck-kits supply. Our medium-term plan was to sell more, says Kruger, but, froma supply point of view, things are not a hundred per cent. We arestill battling to get free SKD (semi-knock-down) supply, especiallyin the 300 and 500 ranges. Hino trucks are assembled in South Africa from SKD kits importedfrom Japan.
Kruger says reaching 5 000 unit sales a year will be a hugechallenge for Hino SA. He says the company hopes to reach thisgoal by increasing its participation in more segments of the marketthan what is currently the case. These include the heavy commercialand extra-heavy commercial vehicle markets. The new 300 series, forexample, also still lacks a 4 4 version.
We can add a lot of volume by adding more scope to our productrange. Increasing our volumes will come through filling gaps in themarket, says Kruger. Every year from now on, we will have a replacement product or anew introduction coming into South Africa. Introducing new ranges into the country will, however, mean thatthe assembly line at the Hino plant will have to be recon- figured,says Kruger.
We are busy planning for this expansion. We can do a double shiftand make the numbers happen. Looking at the general truck market, Kruger expects a much moresubdued year than the 16% and 21% growth achieved over the past twoyears respectively. He expects growth of 3.5% to 5% for the 2012 financial year on the26 700 units sold in South Africa last year. However, despite thissingle digit, a 28 000-unit market will still be the fourth-biggest truck market in South African history.
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Kruger says several economic factors are expected to somewhatweaken the local truck market going forward, includ- ing upgradesto South Africa s rail infrastructure. Some tanker operators have reported that they have tankers out ofwork due to the new fuel pipeline that has opened. The upgradedrail network will also see more cars transported by train. Kruger also expects truck prices to increase if the rand continuesto depreciate, following two years of small or no increases. Thismay affect Japanese manufacturers more than those from Europe orthe US.