Africa’s Pick-up war set to intensify

In 2015, one-ton Pick-up buyers in South Africa and Nigeria could select their wheels from a handful of brands, mostly Japanese. Think Toyota Hilux, Mitsubishi Triton, Ford Ranger, the Isuzu KB, M azda BT-50 and Nissan NP300.

In the next four years, however, another set of Pick-ups may be added to the list, with the European brands launching an especially strong assault on the global market. The reasoning behind their interest in this market appears to be expansion into an as-yet-untapped, increasingly lucrative segment.

In this biggest economies in Africa, the Pick-up market continues to expand. It remains a popular go-anywhere, take-everyone-with, do-it-yourself, outdoor-lifestyle-plus-workhorse vehicle. For the first 11 months of 2015, passenger car sales were down in both countries compared with the same period in 2014.

According to statistics from the National Association of Automobile Manufacturers of South Africa, while light commercial vehicle (LCV) sales –one-ton and half-ton Pick-up vehicles, vans and minibuses were slightly up.

In South Africa, another way to look at it is to note that the nine most popular pick-up brands, selling 11 types of bakkies (Pick-up) sold almost 94,000 units from January to November 2015, compared with 90,500 units for the same period in 2014 – in a domestic economy that almost went into a recession last year.

The most popular vehicle sold in South Africa in 2014, across all segments, was the Toyota Hilux, at 37 562 units, with the Ford Ranger putting on an able, but unsuccessful, chase for the number one spot in 2015.

Hilux sales were down from 34,219 units for the first 11 months of 2014 to 32 955 units for the same period in 2015, while Ranger sales jumped from 25 720 to 31 006 units. The third-biggest bakkie brand in South Africa is the Isuzu KB, at 14 267 units for the period to end-November 2015, followed by the Nissan NP300, at 7 721 units.

All these models are produced in South Africa, with LCV production in South Africa at 255 629 units in 2014, of which 118 585 units were exported. South Africa has, over the years, established itself as somewhat of a bakkie production hub, with four one-tonners and two half-tonners assembled locally.

Pick-up vehicles not only sell well in South Africa, they are also premier export products, especially to the rest of Africa and Europe, assisting South Africa with its balance of payments quandary. Exports to Africa have, however, fallen in recent months as the continent’s oil-rich countries have to face up to sustained low prices for the fossil fuel –a fact that has played havoc with many a government’s finances.

Some policy revisions have also seen government support for pick-up ownership falter, such as in Algeria. Nigeria’s push to develop its own automotive manufacturing industry has also seen exports from South Africa to the West African country convert from fully-built-up units to assembly kits for both Ford and Nissan, urged on by high import duties.

Global market growth would also secure South Africa’s export markets. Also, with one-ton pick-up trucks now seemingly discovered by the Europeans in their quest for sales growth, the only question remaining may be why small half-ton pick-ups are so unpopular in the world, with largely only South Africa and South America active markets for these vehicles.

MIKE OCHONMA