MAN Sales Outlook for 2011 – Q&A - Sake24

1) Which factors do you believe will have a positive and/or negative impact on the sales of medium, heavy and extra heavy commercial vehicles in 2011?

Bruce Dickson – Management Board Member, Marketing & Communications: MAN Truck & Bus: Sales Region Africa.

Sustained recovery of the global economy will be the pivotal factor driving the improvement of sales volumes of commercial vehicles in southern Africa. Improved lending conditions and continued low interest rates from local banks will also help boost unit sales of heavy trucks and buses in 2011. Following the impressive recovery of the market in 2010, fleet replacement cycles should become more frequent. Government’s multi-billion rand investment in its New Growth Path should spur the procurement of trucks and buses in key areas such as infrastructure, agriculture, mining, manufacturing, tourism and the ‘green economy’.

2) What are your sales forecasts (% growth y-o-y of the total market) for the different segments? Why the positive/negative/conservative outlook?

Bruce Dickson

Sales volumes of commercial vehicles with a GVM greater than 8.5 tonnes grew year-on-year (2009 to 2010) by 23.6%. While a modicum of caution needs to be exercised in predicting further growth during 2011, the industry as a whole is hoping for an improvement in the heavy and extra-heavy truck sectors of between 15 and 20%. Bus sales are expected to improve by between 5 and 10%. While these projections are positive, there are certain factors such as labour action, the introduction of AARTO and new toll tariffs which could induce a heightened caution amongst fleet owners and dampen market performance.

3) From a management point of view, what will you focus on in the coming months to maximise sales growth?

Bruce Dickson

MAN Truck & Bus: Sales Region Africa will focus on consolidating its communications infrastructure between its respective Sales Centres in southern Africa to strategically position MAN’s multibrand offering to achieve increased and sustainable market share in the truck market, while sustaining the present market share of the bus market. Via ongoing focused market segment analysis for both MAN and Volkswagen model categories, our mission at MAN Truck & Bus: Sales Region Africa is to ensure a more attractive marketing mix than our competitors at the point of sale in each segment. This will be supported by regular, effectively structured media collateral to boost brand exposure while maintaining the highest levels of Brand Management and Customer Satisfaction Management (CSM) throughout southern Africa.