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Business Fleet Africa April 2023.pdf
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More about
Business Fleet Africa
EDITION 24 April 2023
4
18 31
Volvo Trucks power ahead
with EV adoption
TABLE OF CONTENTS
3 Editorial
Business
4 Protecting your investment
8
The SA logistics sector continued to
improve during February
RoadSafety
6
The importance of the pre-hire screening
of drivers
News
10 Local News
28 Industry News
Interview
14
Volvo trucks powers ahead with EV
adoption
16
Pargo improves access to e-commerce
Intheheadlights:HCVFleetVehicles
18 MAN TGS 26.440 stands the test of time
19 Proven: Electric trucks are more efficient
20 An affordable 1.5-ton option
21 Why axle tracking is important
22 Hino Isando wins dealer of the year
SupplyChainandLogistics
24
Procurement’s new recession-proofing
strategy
25 Finding the right supply chain partner
FleetManagement
26 Managing your fleets carbon footprint
30 A strong case for retreading
Branding
31 All about fleet vehicle branding
32 The benefits of vehicle branding
33 How to find branding ideas
34 Vehicle branding needs TLC
Intheheadlights:LCVFleetVehicles
36 Hyundai adds Venue Cargo to line up
37
Toyota Fortuner receives styling
enhancements
38 Renault launches all-new Captur
39
Suzuki Ciaz continues to represent excellent
value for money
40 VW Polo Vivo GT gets a new look
42 Johannesburg to Cape Town on one tank
IndustrySales
43 SA commercial vehicle market holds up
44 Buyers Guide
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PROVIDER TO THE PRIVATE SECTOR* africa AWARDS
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38
14
4. In the last week of March, the South
African Reserve Bank announced a fur-
ther 50 basis points hike in the repo rate,
the second increase for the year and
one which sees the repo rate increase
to 7.75% while the current prime lending
rate shifts to 11.25%, the highest it has
been since 2009.
These increases directly affect
persons and businesses paying off loans
such as vehicle finance, which is coupled
to the interest rate, as the monthly
repayment amount will increase. This lat-
est announcement tightens the screws
even further in an economy where
consumers and businesses are already
under pressure.
The effect that this increase will have
on vehicle repayment amounts depends
on whether your agreement includes a
fixed interest rate or a linked interest rate,
and those customers who initially opted
for a fixed interest rate will be unaffected
by fluctuations in the repo rate.
Unfortunately, those that opted for a
linked interest rate, something popular
a few years ago when the interest rate
was low, now find themselves with
substantially higher repayment amounts.
When applied to a large fleet of vehicles,
this can result in hundreds of thousands
of rands of additional debt repayment
costs that were not budgeted for.
The result of rising interest rates and
inflation, due to the deteriorating rand
as well as a variety of other geopolitical
factors, is longer ownership cycles with
fleet buyers postponing new vehicle
purchases, buying down or even looking
to the pre-owned market.
The increasing trend of fleet owners
keeping their vehicle’s for longer and
clocking up additional mileage across the
lifespan of a vehicles working life means
that it is more important than ever for
fleet owners to buy quality products and
products that are accompanied by quality
backup throughout the ownership cycle.
BUSINESS
‘Aside from structuring
a finance deal that is
right for your business,
the positive ownership
experience that comes
with buying quality
products is a more
important factor
than ever before.’
Protecting your investment
BUSINESS FLEET AFRICA | April 2023
4 WWW.BUSINESSFLEETAFRICA.CO.ZA
5. “Aside from structuring a finance
deal that is right for your business, the
positive ownership experience that
comes with buying quality products
is a more important factor than
ever before,” says Derick de Vries,
Executive Head of Standard Bank Fleet
Management.
These days the purchasing decision
is about so much more than just the
purchase price. In addition to the
obvious factors such as fit for purpose,
fuel consumption and safety, buyers are
now placing increasing value on a high
level of actual product quality, a national
dealer network which can support
products across South Africa and the
availability of quality replacement parts
at reasonable prices.
If all these factors are in place in
the beginning and remain functional
throughout the ownership period, fleet
owners have the best chance of getting
good service and value for money out of
the entire ownership experience as well
as a good return on their investment
when the time does come to trade their
vehicle in for something newer.
These ownership and support factors
are critical in an era of learning to man-
age transportation in an environment
of price escalation and more extended
ownership periods,” adds de Vries.
When running vehicles for longer
periods of time, it is critical to have a
meticulous service and maintenance
programme in place that is well
managed. Preventative maintenance
becomes so much more important when
you know that you will still be operating
the vehicle three or four years down the
road, and it is critical for protecting your
investment and ensuring the best resale
value when the time comes.
Measurement and management
become vitally important in the quest
to determine the cost versus efficiency
equation that needs to be calculated
when deciding when to trade vehicles
for new ones and when to keep them
for longer. This can mean the difference
between success or failure.
A sophisticated yet easy-to-use fleet
management is the only way of knowing
exactly how your vehicles are used,
the costs involved with that usage, and
identifying opportunities to use vehicles
for longer and more efficiently. These
systems also assist you in staying on top
of the administration of maintenance
schedules and yearly licensing, allowing
for proper planning and minimising
downtime while these necessary tasks
are seen to.
“While all these factors will go a
long way in protecting your investment,
Standard Bank understands that meeting
repayment obligations can be challeng-
ing in tough economic times. Standard
Bank Fleet Management has various
products available to assist fleet owners
and businesses in restructuring and
ultimately running fleets more pro-
ductive and cost-effective,” concludes
De Vries. BFA
5
April2023 | BUSINESS FLEET AFRICA
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6. ROAD SAFETY
BUSINESS FLEET AFRICA | April 2023
6 WWW.BUSINESSFLEETAFRICA.CO.ZA
It is frightening and disheartening to
see how many fleet managers get away
with short cuts when recruiting drivers
to operate their expensive assets. Many
companies merely rely on the years of
driving experience reflected on a CV and
a short drive around the block accompa-
nied by a senior driver before the new
recruit is given the thumbs-up.
The high accident rate involving com-
mercial vehicles places a huge burden
on company profitability. In these tough
economic times, every effort should be
made to hire right, so that poor deci-
sions do not come back to haunt you.
There are various factors that HR
practitioners consider when hiring staff
including qualifications, skills, experience
and personality traits. When recruiting
drivers, these requirements should be
expanded to include driving competence,
legal compliance, the ability to drive
economically and customer relations.
Given the country’s poor accident
record it is obvious that there are
numerous systemic failures in the road
safety system, so an important element
that is supposed to regulate the smooth
and safe passage of transport is broken
and thus, unreliable. It is therefore left to
companies to close the gap by ensuring
that stringent recruitment and selection
takes place through effective pre-hire
screening.
Many companies do not conduct
effective pre-hire screening because it is
costly and time consuming and, in some
instances, could fall foul of privacy laws
if done incorrectly. If reputable screen-
ing companies are engaged, much of the
stress and frustration can be eliminated
from this all-important step.
Over and above the usual pre-em-
ployment screenings such as reference
checks, police clearance, identity
verification, health examinations, driving
licenses and PDPs (professional driving
permits), practical screening for new
hire drivers should include the following
minimum aspects:
Driving competency
The job description of a driver is to
transport goods or passengers from one
point to another. As such, they should be
competent in driving and operating that
particular class of vehicle. This includes
conducting pre-trip inspections, as well
as being able to drive the vehicle safely
in various road environments, weather
conditions, traffic volumes and with
varying loads.
Legal compliance
The driver is fully responsible for driver
fitness, meaning being healthy, safe,
sober, alert, well-rested, knowledgeable
and fully compliant with road rules,
regulations and road signs. They also
need to be fully conversant with the
legal prescripts of vehicle documenta-
tion and loads management, especially
with regard to abnormal loads and the
transportation of dangerous goods.
Driving safely at all times is an absolute
must. Reference checks must raise
questions about a driver’s crash history.
This will go a long way towards weeding
The importance of the
pre‑hire screening of drivers
The job description of a driver is to transport goods or
passengers from one point to another. As such, they
should be competent in driving and operating that
particular class of vehicle. This includes conducting
pre-trip inspections, as well as being able to drive the
vehicle safely in various road environments, weather
conditions, traffic volumes and with varying loads.
7. 7
April2023 | BUSINESS FLEET AFRICA
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out rogue drivers that can be a constant
liability to the company.
Driving economically
Also referred to as driving with mechani-
cal sympathy. A professional, competent
and experienced driver will be able to
demonstrate driving a vehicle smoothly
and gently. No harsh acceleration, harsh
braking and over speeding. A good driver
will change gears efficiently to constantly
drive in the green band, will look far
ahead and plan manoeuvres to save fuel
without compromising safety. A profes-
sional driver will also conduct thorough
pre-trip inspections to ensure minimum
disruptions and breakdowns on the road.
Hazard management skills
An experienced, well trained and com-
petent driver is able to read the road for
moving and stationary hazards which in-
clude visual, physical and mental hazards.
They need to predict and anticipate the
dangerous behaviour of other road users
and be in a position to react promptly
and correctly to avoid or prevent a crash.
Drivers who have undergone advanced,
defensive driver training are easily able
to apply these skills in various trying road
conditions. The marque of a good driver
is one who is able to use both mental
and physical skills to avoid incidences by
looking far ahead and being constantly
aware of their surroundings.
Avoiding road rage
The public road is a public space where
people from various races, cultures,
classes, ages and gender come together
with a common purpose of getting from
point A to point B. Sadly, many people
in the country are troubled by many
personal issues as well as issues outside
of their control. This manifests into high
levels of built-up anger when driving
which leads to a lethal combination of
road rage which often ends tragically.
Much can be observed about a driver’s
attitude to other road users including
factors such as how often they lose their
temper, how they respond to driving in
an angry state and these attitudes can
easily be assessed because old habits
die hard and can be detrimental to road
safety and personal security.
Customer relations
Company drivers who are transporting
passengers or freight or driving for
work are exposed to greater risks than
their office-bound counterparts. They
tend to become more flustered given
the many daily traffic challenges they
need to contend with. Needless to say,
some of this negativity may be directed
at their clients, which could be bad for
business as they are the face of the
company. Indeed, they are the true
ambassadors of their respective brands
and how they deal with various custom-
er relations will go a long way towards
displaying the culture of their company.
It is therefore critical to hire drivers
who will be an asset to your brand.
Pre-hire assessments may be a
bit costly and time consuming, but
it is definitely worth the time and
effort in ensuring that you have a
team of professional drivers who
will save you endless headaches, by
reducing incidents, saving lives, and
enhancing the image of your company
by being professional, proactive
and productive. BFA
Ashref Ismail is a multiple
award-winning road safety
practitioner with more than 35
years’ experience at provincial,
national and international levels.
He holds qualifications in Traffic
and Municipal Policing, Teaching,
Public Relations and Professional
Driving. He currently runs his own
fleet risk management consul-
tancy, specialising in advanced,
hazard management training and
driver wellness.
8. BUSINESS FLEET AFRICA | April 2023
8 WWW.BUSINESSFLEETAFRICA.CO.ZA
TRANSPORT AND FREIGHT INDEX
Following a challenging 2022, the South
African logistics sector bounced back
somewhat during January 2023, and
that momentum was sustained during
February. The Ctrack Transport and
Freight Index (Ctrack TFI) increased by
1.7% in February compared to the previ-
ous month, following a revised monthly
increase of 1.4% in January (and declines
in the preceding four months). On an
annual basis, the Ctrack Transport and
Freight Index increased by 2.5%, which
is a welcome improvement even though
the increases are far below the annual
growth rate of 13.7%, which was record-
ed as recently as August 2022. However,
all indications are that the industry is on
a sustained positive trajectory.
All the sub-sectors of the logistics
sector continue to reflect vastly different
performances, which proved to be a
major factor in the overall industry’s
resilience. The detrimental impact of the
strike on Sea and Rail Freight has, for ex-
ample, turned out to be a boosting factor
for Air Freight and Road Freight, thus
offsetting the overall negative impact.
In February, four of the six sub-sectors
declined on an annual basis, whereas four
of the six increased on a monthly basis,
indicating positive near-term momentum.
Zooming into the sub-sectors
revealed a welcome improvement in the
performance of Rail Freight, although off
an extremely low base. While still deep
in negative territory on an annual basis,
the Rail Freight component of the Ctrack
Transport and Freight Index increased
by 6.4% on a monthly basis. On an
annual basis, the Rail Freight component
returned a decline of 20.9% in February
2023, the 11th consecutive decline
recorded and confirmation that rail
remains the Achille’s heel of the South
African logistics sector. Having under-
performed for years, the government
has finally invited the private sector
to get involved in a potential solution.
Enabling third-party access to the rail
network is critical for addressing the
declining performance of Rail Freight,
and therefore, the plan to separate the
infrastructure and operational aspects
of the rail business and to establish a
separate infrastructure manager within
Transnet Freight Rail are seen as crucial
steps towards creating a level playing
field for public and private operators on
the country’s rail network. These steps
to address the sector’s challenges are in-
deed welcomed and could potentially be
a major game changer for the logistics
sector if they do reach fruition.
While the obvious beneficiary of the
dismal state of Rail Freight has been the
Road Freight sub-sector, the growing
number of heavy trucks on South
African roads is having a negative impact
on the quality of the road network
and accelerates the need for ongoing
maintenance while also contributing to
increased greenhouse emissions. The
growing focus on environmental con-
cerns has recently placed the unhealthy
split between road and rail transport
under the spotlight. A report themed
‘Decarbonising South Africa’s Transport
Sector’ states that to enable South Africa
to cut greenhouse gases in the transport
sector to zero, between 15% to 20% of
road traffic must move to rail.
The South African logistics sector
continued to improve during February
Graph 1 Ctrack Transport and Freight Index % change on a monthly basis
Ctrack Transport and Freight Index
Percentage change on monthly basis
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Oct-18
Oct-19
Oct-20
Oct-21
Oct-22
Jan-23
Apr-18
Apr-19
Apr-20
Apr-21
Apr-22
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
Source: Ctrack
%
Recovery Post Lockdown
KZN Looting
Covid 19 Hard-Lockdown
KZN Floods
Transnet Strike
-3.4%
1.4% 1.7%
CTRACK
2023
NATIONAL
BUDGET
Ctrack Transport and Freight Index
Monthly growth in sub-components
Ctrack FTI sectors change on a year ago
Rail 6.4
Pipeline 4.3
Road 2.4
Air 0.9
Sea -0.2
Storage -5.7
-6 -4 -2 2
0 4 6 8 %
Source: 2023 National Budget
Graph 2
Monthly growth in sub-components of the Ctrack Transport and Freight
Index (%)
9. 9
April2023 | BUSINESS FLEET AFRICA
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Table 1 Change in Ctrack Transport and freight Index in February 2023
Percentage change between Rail Road Pipeline Sea Air
Storage and
handling
Ctrack Freight
Transport Index
February 2023 vs February 2022 (y/y) –20.9% 16.9% –2.3% –10.7% 2.0% –20.5% 2.5%
February 2023 vs January 2022 (m/m) 6.4% 2.4% 4.3% –0.2% 0.9% –5.7% 1.7%
Quarter to February 2023 vs. Quarter to November 2022 (q/q) –8.9% 3.9% 12.3% 5.0% –0.7% –15.9% –0.3%
Note: The row highlighted in blue is the main Ctrack Transport and Freight Index values used.
Source: Ctrack and economistscoza, TNPA, StatsSA, SARS, N3 and N4 toll concessions, ACSA, ACOC, IATA.
This would represent a major U-turn
on a multi-year trend, and the report
noted: “This will require integrated
policy support, coordinated infrastruc-
ture investments and collaboration
amongst all key stakeholders. Without a
deliberate and coordinated local effort,
South Africa’s transport sector will be
on a trajectory that is inconsistent with
South Africa’s climate commitments
or Nationally Determined Contribution
under the Paris Agreement by 2030 and
inconsistent with net- zero by 2050.” The
report is part of a series of publications
from the Climate Pathways and Just
Transition Project run by the National
Business Initiative (NBI) in partnership
with Business Unity South Africa and
Boston Consulting Group.
“While reducing the number of vehi-
cles on the road is an easy way to reduce
emissions, that might not be possible
in a South African context. However, a
sophisticated and well-managed fleet
management system can significantly
contribute to the more efficient running
of large fleets, and in that way, emissions
can be reduced,” says Hein Jordt, Chief
Executive Officer of Ctrack Africa.
In February 2023, the Road Freight
component of the Ctrack Transport and
Freight Index increased by 16.9% on an
annual basis, the 23rd straight month
of double-digit annual growth rates
recorded. When examining this trend in
detail, some interesting, divergent trends
become evident. The number of heavy
trucks on the N4 toll routes increased by
double digits during February 2023, while
the number of heavy trucks on the N3 toll
route declined by 3.0%. During the same
period, overall road freight payload for
the country showed continuous growth.
The Air Freight sector, which turned
out to be one of 2022’s star performers,
had a mixed performance in February.
The Air Freight component of the Ctrack
Transport and Freight Index increased by
0.9% on a monthly basis in February and
was only 2.0% higher compared to a year
earlier (vs 4.6% year on year in January).
Cargo loaded onto planes increased by
8.7% on a monthly basis after having de-
clined for three straight months. All the
other underlying components of the Air
Freight sector declined. According to the
International Air Transport Association
(IATA), lower demand for air cargo is now
evident across the globe, reflecting the
multiple headwinds facing the global
economy and spilling over to trading
partner countries. Air cargo tonne-kilo-
metres (CTKs) to Africa declined by 9.5%
in February, following on from January’s
10% annual decline. Total consolidated
airport flight movements were down by
4.3%, the fourth consecutive monthly
decline.
The Sea Freight component of the
Ctrack Transport and Freight Index
declined by 10.7% in February compared
to a year ago and declined marginally on a
monthly basis (-0.2%), reflecting a month
of mixed performance at the ports.
Container handling declined by 7.0% on
a monthly basis in February and remains
24.5% below the September 2022
pre-strike level. General cargo handling
increased by 5.5% in February but also
remains 7.0% below pre-strike levels. The
Sea Freight sector only partially recov-
ered from the detrimental impact of the
Transnet strike in October 2022, confirm-
ing fears that it might be impossible for
the industry to recover fully.
The Storage and Handling sub-sector
of the Ctrack Transport and Freight Index
remained under pressure for most of
2022, with a trend of declining inventory
levels evident before the Transnet strike
made matters worse. The sub-sector
declined by 20.5% in February on an
annual basis, 5.7% on a monthly basis
and 15.9% on a quarterly basis.
The transport of liquid fuels via
Transnet Pipelines increased by 4.3% on
a monthly basis in February 2023, with
the pipeline component of the Ctrack
Transport and Freight Index improving
by 12.3% on a quarterly basis, however,
this is still 2.3% lower than a year earlier.
Ctrack TFI and GDP growth
The transport sector defied expectations
of under-performance in the fourth
quarter of 2022 to be the best sectoral
performer, admittedly amongst multiple
laggards. The negative impact of the
prolonged Transnet strike had depressed
the transport sector’s contribution,
with the sector growing by only 0.7%
on a quarterly seasonally adjusted basis
compared to growth of 3.6% in the third
quarter. However, given that the overall
economic performance was worse,
with real GDP contracting by 1.3% on a
quarterly seasonally adjusted basis, the
transport, storage and communication
sub-sectors were the star performers.
This talks to the resilience and diversity of
the sector, despite multiple headwinds.
The ongoing challenges of harsh load
shedding, high cost of living, high produc-
tion costs due to high fuel prices, rising
wage demands and elevated interest rates
all contributed to the country’s dismal
economic performance in the fourth
quarter of 2022. With little indication of a
notably different economic environment
in 2023, but rather even lower economic
growth forecasted for 2023 compared to
2022, the economic environment is ex-
pected to remain dismal and challenging.
“While a lot of focus remains on short-
term challenges, with many sectors and
companies in survival mode, government
and stakeholders must remain focused on
structural reforms to improve the efficien-
cy and competitiveness of the transport
sector in the long term and return to
thriving mode,” concludes Jordt. BFA
10. BUSINESS FLEET AFRICA | April 2023
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The South African Tyre Manufacturers Conference (SATMC) is
actively working to address the issue of illicit trade of tyres in
South Africa. This includes, amongst others, misdeclaration of
tyre consignments and rerouting of imports through neigh-
bouring countries in order to avoid tyre duties, environment
levies and permits.
The SATMC is the representative body of the four leading
global tyre manufacturers with manufacturing facilities
established in the country, namely Bridgestone Southern Africa,
Continental Tyre South Africa, Goodyear South Africa and
Sumitomo Rubber South Africa.
Chairperson, Lubin Ozoux, who is CEO of Sumitomo Rubber
South Africa, said illicit tyre trade is a growing concern and has
far-reaching impacts on the industry, as well as the safety of
drivers and passengers on the road.
“The production, import, export, purchase, sale or posses-
sion of tyres that fail to comply with the domestic legislation of
South Africa must be taken seriously and stamped out. We as
the SATMC, representing local tyre manufacturers, are particu-
larly concerned about the entry of substandard and counterfeit
tyres into the South African market. These tyres often do not
meet the required safety standards, are made with inferior
materials and are prone to failure, placing millions of lives on
our roads at risk,” said Ozoux.
Tyres which are illegally brought into the country pose a
serious threat to the safety of South African consumers. While
this issue has been a persistent problem for several years, the
recent increase could be attributed to the rise in illegal trade
activities globally as globalisation and e-commerce continue
to expand.
SATMC Managing Executive, Ndu Chala, said the Tyre
Importers Association of South Africa (TIASA), in collaboration
with the SATMC, has been working closely with the South
African Revenue Service (SARS) to root out illicit trade in the
industry. “There are currently just over 60 open cases of illicit
trading related to the tyre industry that are being investigated
by SARS. There is no outcome yet and we await SARS processes
to finalise these,” said Chala.
Ozoux said all role players in the tyre industry including
manufacturers, importers, dealers and distributors are aligned
and collaborating to tackle the scourge of illicit tyre trade. The
SATMC has also introduced a number of solutions, including
increased collaboration with law enforcement agencies to
enforce regulations, and increased public awareness through
targeted campaigns. BFA
NEWS
Curtailing illicit tyre trade will
help improve SA’s road safety
In an unprecedented achievement since gaining independence
just over a year ago, Daimler Truck Southern Africa (DTSA), has,
not only retained its Top Employer title in South Africa for the
second year running but has also earned a highly sought-after
local recognition as the Top Employer Industry Leader 2023 in
the automotive sector. This honour was made official by the
Top Employers Institute in the Forbes Africa – Top Employers
Supplement and solidifies DTSA’s consistent excellence in peo-
ple management practices. Excitingly, this places the truck and
bus manufacturer among the top 20 Top ranking companies,
attaining 7th
position in South Africa.
“To be one of the leading employers in South Africa for
the second successive year is something that we are out-
standingly proud of as DTSA. Moreover, this year we took it
a notch higher as we were also ranked as number one in the
automotive sector for the first time. I am humbled by these
notable accomplishments, they are a testament to our efforts
and commitment to ensuring that we continue to maintain
excellent people practices and foster a favourable working
environment for our people. A huge thank you to our es-
teemed employees for their immense contribution to ensure
continued success, to us as DTSA, our people remain an
indispensable asset,” said Michael Dietz, President Group
CEO Daimler Truck Southern Africa. BFA
Daimler Truck shines in Top Employer awards
12. BUSINESS FLEET AFRICA | April 2023
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Mitsubishi Motors unveiled the
Mitsubishi XRT Concept – a concept
car of the all-new Triton pickup truck
planned for launch in fiscal year 2023
at the recent Bangkok International
Motor Show.
The Triton is Mitsubishi Motors’
top-selling model manufactured at the
Laemchabang Factory in Thailand and
the company’s global strategic vehicle
exported to about 150 countries around
the world. With its first full redesign in
approximately nine years, the all-new
Triton will be the sixth generation of
the brand’s midsize pickup truck. After
the launch in Thailand in fiscal 2023,
it will be released sequentially in the
ASEAN region, Oceania and other
global markets.
The XRT Concept is characterised by
a fierce expression on the front and a
robust hood that continues along the
side with bold, horizontally themed styl-
ing. The fitment of front and rear over
fenders as well as mud-terrain tyres, give
add to all-terrain look.
As part of the development Team
Mitsubishi Ralliart plans to compete
in the gruelling Asia Cross Country
Rally with a prototype cross-country
model of the all-new Triton (Group T1
specifications) in its quest for a second
straight victory. Hiroshi Masuoka,
a two-time Dakar Rally champion
driver in 2002 and 2003, remains as
Team Director, and Mitsubishi Motors
engineers will perform pre-testing
and accompany the team to provide
support at the rally.
“Fiscal 2023 is an important year for
Mitsubishi Motors in accelerating our
business in the ASEAN region, with the
launch of a fully revamped Triton and an
all-new compact SUV. The Triton is going
through final touch-ups in preparation
for its release and we have performed
rigorous endurance tests around the
world while also incorporating the
know-how gained from rally activities.
With the new vehicle launches as the
centrepiece, we will continue our drive
toward further growth,” said Takao Kato,
President and Chief Executive Officer,
Mitsubishi Motors. BFA
The already overstretched South African fiscus is losing billions
of rands in potential income in the form of taxes and levies due
to the illegal importation of motor vehicles. A recent estimate is
that there are hundreds of thousands of these illegally import-
ed vehicles operating on local roads. If these buyers had bought
new or used vehicles through official channels instead of illegal
imports, and paid annual license fees, the benefits to the fiscus
would have been huge, considering how long this practice has
been going on.
Half a million foreign registration plates have been recorded
on South Africa’s roads in the last five years, an alarming
statistic given that the country’s official vehicle parc is made up
of around 13 million units.
It is also calculated that the problem continues unabated
with more than an estimated 50 000 vehicles joining the
illegal vehicle parc each year. These illegal imports are vehicles
imported from another country through channels other than
the those of the manufacturer or official distributor. Generally,
these are used vehicles.
Used vehicles may not be brought into South Africa for sale,
but may be imported via a South African port with the intention
of exporting them to a neighbouring
country and this is where, it is believed,
loopholes are found.
There are strong regulations in place
regarding the importation of pre-owned vehicles or used
parts, but unfortunately there is little control over so-called
illegal imports that come into the country through a multitude
of border posts.
Strict control measures in South Africa supposedly
ensure only a limited number of legal import permits for
used vehicles are issued annually. These are for immigrants,
residents and nationals returning to South African, specially
adapted vehicles for those with physical disabilities, vehicles
inherited by South African citizens and nationals as well as
vintage and collectors’ cars and racing cars. Except for special
cases, left-hand drive cars are not permitted to enter the
country.
Finding ways of tightening up border controls to fight this
illegal practice is not only in the interests of the local automo-
tive industry, but also a legitimate way of increasing income for
the fiscus, which is in the national interest. BFA
Mitsubishi unveils
XRT Concept
Illegal vehicle imports siphoning billions from fiscus
NEWS
13. Speak to your ISUZU Truck Dealer for more information, or call Customer Care
08000 ISUZU (47898) or visit www.isuzu.co.za/truck-rentals
ISUZU has been helping businesses grow and prosper. It’s a brand which
can be trusted to be the most reliable truck for your business aspirations.
It’s time to take the next bold step on your journey to success. And to do that
- you need a reliable and accessible partner. Put your business in the driving
seat with the option to rent, not own.
So, let’s get to work.
OUR EasyGO
DEALS ARE HERE
WHEN YOU’RE
READY TO WORK
*Only applicable to the van bodies and dropside NPR400, NQR500 and FTR850
*
14. INTERVIEW
BUSINESS FLEET AFRICA | April 2023
14 WWW.BUSINESSFLEETAFRICA.CO.ZA
Business Fleet Africa (BFA) recently sat down with Eric Parry,
Senior Manager of Sustainable Solutions at Volvo Trucks South
Africa, to discuss the benefits and challenges of operating
electric trucks in South Africa.
Parry explained the operational benefits, incentives and
charging infrastructure as well as the potential of electric
trucks to allow for new ways of working, such as delivering
into urban areas at night, and the use of batteries in a
second life.
Parry also touched on the potential for local manufacturing,
the need for customer education, and the ability of solar panels
to reduce the total cost of an electric truck operation.
BFA: There has been a lot of talk about electric trucks and
pictures and prototypes, but we haven’t seen anything on the
road, until now.
Parry: That’s why I love our #electrictrucksinreallife messaging.
It’s not just a theory anymore. The nice thing with these trucks
is that we’ve developed them to be functional for transporters.
They’re not flashy because operators want electric vehicles
to perform like a normal truck, they want them to perform
predictably.
BFA: We noticed a lot of similarities between this truck and
the normal diesel versions.
Parry: Yes, it still uses the same gearbox, the I-Shift for exam-
ple, albeit with a completely different control architecture.
Inside, everything looks and feels the same. While the buttons
are the same, the instruments are subtly different. But the way
that users interact with them is the same as a normal truck.
We don’t want transporters to have to completely change their
paradigm, we want them to be able to continue conducting
their operations as they currently do.
BFA: What are some notable incentives to go electric?
Parry: You have the potential to open up different ways of
working. For example, delivering into urban or suburban
areas at night. Warehouses don’t need to build loading docks
anymore. They can just drive the truck straight in as there are
no emissions at all.
BFA: What about the complications with
the way the vehicles are configured?
Parry: The fact is, batteries take up space. So, the wheelbase of
the tractors must be a bit longer. You don’t really notice it on
the small delivery vehicles because there’s usually wheelbase
to play with. But when you talk about truck tractors you end
up, in our case specifically, being 700 millimetres longer than a
normal truck. We must look very carefully at how we operate.
Those are considerations we take with our customers.
BFA: Are there any concerns regarding the weight as electric
trucks weigh more than the equivalent diesel variants?
Parry: Yes, but in most cases, the operators who are using them
are not using them for volume work, so the extra weight is not
really a big issue.
Volvo Trucks power ahead
with EV adoption
Eric Parry
15. 15
April2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
BFA: Did you have to consult with several industry bodies
and related associations before launching these new
powertrains?
Parry: As Volvo Trucks Southern Africa, we are a part of
NAAMSA. Within NAAMSA, there’s a heavy commercial
vehicle, new energy vehicle subcommittee. The purpose of that
committee is specifically to support the evolution and uptake
of alternative energy vehicles in South Africa. It’s not limited
to battery-electric, it includes things like liquefied natural
gas (LNG). LNG has a similar problem in terms of wheelbase
because you need space to fit the tanks. You also can’t split
tanks because they’re cryogenic. And with hydrogen fuel cells,
you also need to be able to store hydrogen tanks somewhere.
Whatever we put in place for battery-electric trucks will help
those vehicles as well. Some of the proposals that have been
put in place are to allow for slightly longer vehicles. Instead
of being 18.5 metres, we’re trying to go to 19.5 metres, as an
example. And instead of being 22 metres, we’re attempting to
go to 23 metres, but only for a new energy vehicle. We also
need to allow for slightly higher axle/combination weights.
BFA: Apart from the operational incentives, is enough being
done to incentivise electric truck adoption in the country?
Parry: Right now, there are no incentives at all. We are sub-
jected to the same import duties as with diesel trucks, which
is between 12 and 20%, depending on the vehicle’s origin. The
result is that a big portion of the final price is comprised of
duties. We, of course, try to absorb as much of that as we can,
because we’re trying to drive uptake. There are proposals for
the reduction of import duties and road tolls for these types
of vehicles.
BFA: The electric trucks we’re seeing here today come
from Sweden?
Parry: Yes, our primary factory for these is in Sweden and the
secondary factory is in Belgium. Right now, there is a plan for us
to do knocked-down (KD) assembly in Durban, but that’s a few
years away because we need the volumes to support it. It’s in our
interests to try and convince the government and the DTIC, to
reduce duties for a limited period to allow us to build the volume
and demand to allow us to invest in KD. However, every OEM is
on the same page.
BFA: What benefits will local the assembly of electric
trucks offer?
Parry: The benefit for us is that, as the local industry develops,
we’ll create battery pack assemblers, manufacturers and recy-
clers. We’d like to be able to do recycling locally. We don’t want
to ship batteries across the world to be recycled.
BFA: What is the expected battery life for these trucks?
Parry: Six to eight years, but it very much depends on how
they’re used. We’re looking at how to develop that second
life. In Sweden, we’ve taken batteries out of electric buses
when they’re no longer suitable for use in high current draw
applications. We’ve found that they’re still perfectly good for
use in certain residential, retail or industrial applications. They
are used as battery backups. In our country, many people
and corporations are moving towards solar, which requires
battery backup.
While each battery produces 90 kilowatts, we only make
63 kilowatts of that available. We keep the top and bottom of
it contained so that you can’t overcharge or undercharge the
battery and damage it.
BFA: Who will be responsible for the charging infrastructure?
Parry: Most transporters, especially those involved in distribu-
tion, tend to carefully control their refuelling infrastructure. They
prefer to either have on-site fuelling or use a bowser. Either way,
they use a dedicated refuelling station. So, the concept of con-
trolling your own charging is not that dissimilar to what they’re
already doing. Putting down their own charging infrastructure
makes a lot of sense.
The charging point itself is not difficult to install or move.
And the chargers are not fussy about where they get their
power from. It wants 400 volts and a certain number of amps,
whether that comes from your own facility, from a battery
backup or generator, or from an independent power producer,
it doesn’t matter. BFA
Most transporters, especially those
involved in distribution, tend to carefully
control their refuelling infrastructure.
They prefer to either have on-site fuelling
or use a bowser. Either way, they use
a dedicated refuelling station. So, the
concept of controlling your own charging is
not that dissimilar to what they’re already
doing. Putting down their own charging
infrastructure makes a lot of sense.
16. INTERVIEW
BUSINESS FLEET AFRICA | April 2023
16 WWW.BUSINESSFLEETAFRICA.CO.ZA
Pargo is a South African logistics and
technology company co-founded by Lars
Veul in 2014. The company focuses on
solving the last-mile delivery problem
in Africa by providing a convenient and
affordable solution for e-commerce
businesses.
Pargo manages a network of collec-
tion points throughout South Africa,
enabling customers to retrieve their
online purchases at a convenient time
and location.
The corporation additionally offers
courier solutions to enterprises, enabling
them to dispatch packages to any
location within South Africa. One of
the primary benefits of utilising Pargo’s
services is the level of convenience it
provides.
Clients have the option of retrieving
their packages from a Pargo collection
point situated in proximity to their res-
idence or workplace, thereby obviating
the necessity of being present at home
for the delivery.
This is especially advantageous
for clients residing in regions where
doorstep deliveries are not consistently
dependable or safe.
Pargo has additionally created a vari-
ety of pioneering technologies aimed at
enhancing the effectiveness and clarity
of its activities. The software platform
developed by the company facilitates
the tracking of parcels in real-time,
thereby enabling customers to monitor
the progress of their deliveries from the
beginning until the end.
Furthermore, Pargo’s data analysis
instruments aid enterprises in enhancing
their logistics procedures, resulting
in decreased expenses and enhanced
delivery timelines.
In essence, the corporation is contrib-
uting to the alteration of the logistics
terrain in South Africa. The emphasis
on convenience, cost-effectiveness,
and technological advancements has
rendered it a favoured option for
e-commerce consumers and enterprises
seeking to streamline their logistical
activities.
Business Fleet Africa sat down with
Lars Veul, the Managing Director, to gain
further insights into the operations of
the organisation. Veul was born in the
Netherlands and has a profound affinity
for Africa, as he spent his formative
years in several African nations (Kenya,
Zambia, Uganda) due to his parents’
employment with the Dutch Ministry of
Foreign Affairs.
During his time residing and pur-
suing education in Amsterdam, Lars
successfully earned his Bachelor of
Science and Master of Science degrees,
consecutively.
After completing his studies in 2010,
Veul joined Groupon’s team in the
Netherlands. As a member of the found-
ing team, he contributed to the expansion
of the enterprise from a staff of 10 to
500, generating $50 million in annual
revenue within a span of 2.5 years.
In 2012, Veul was tasked with
initiating operations in South Africa
for the rapidly expanding e-commerce
enterprise. After a while, they came
to the realisation that the challenges
faced by e-commerce in the continent
were just as significant as its potential
benefits. The primary challenge faced by
companies in delivering their products
to consumers is logistics. Groupon and
other e-commerce enterprises refrained
from utilising the national Postal service
owing to inadequate digital integration,
recurrent labour strikes, and service
interruptions.
The independent courier services
were also deemed unreliable due to
their inability to conduct door-to-door
deliveries to distant and unmarked
locations, particularly in small regional
towns, rural areas, and townships.
Investigation revealed that the issue
of delivery is not limited to the rapidly
expanding e-commerce firms through-
out the nation. Rather, it affects any
enterprise or institution that prioritises
direct-to-consumer shipments. This
includes financial institutions (credit and
debit cards), telecommunications com-
panies (mobile devices and sim cards),
educational institutions (textbooks),
and healthcare providers (long-term
medication).
After an unsuccessful search for
solutions, Veul opted to develop his own
solution and subsequently launched
Pargo.
“We have been engaged in B2C last-
mile logistics. The remarkable expansion
of e-commerce has led to a significant
increase in growth, and it is still an
expanding industry, “ he states.
Pargo improves
access to e-commerce
17. BFA: Can you describe the demographic
characteristics of your user base?
Veul: There are two levels of solopreneur.
The initial group is considerably for-
malised. The individuals in question have
made a deliberate decision to allocate
both their time and financial resources
towards their entrepreneurial pursuits.
The second category consists of
unregistered merchants who have
transitioned to e-commerce by utilising
platforms such as Gumtree or Facebook
Marketplace. They are endeavouring to
generate additional revenue.
BFA: Traditional courier companies face
a significant challenge as a considerable
number of their customers lack physical
addresses. Frequently, the numerical
identifiers affixed to residential buildings
are absent. The state of the roads is
poor, and there exist concerns regarding
security and accessibility. Do you agree?
Veul: Completely, through the estab-
lishment of these collection points, our
primary objective is to ensure accuracy
and precision. This is an emerging phe-
nomenon on a global scale, not limited to
South Africa alone. The potential in Africa
is immense as there is a significant popu-
lation that requires access to commodi-
ties. With the proliferation of smartphone
usage, increased internet accessibility,
and greater disposable income, the entire
continent now has access to products
that were previously unavailable.
Considering this, we have devised an
exceedingly straightforward solution and
leverage hundreds, and now thousands,
of retail locations to facilitate the send-
ing, receiving, and collection of parcels
by individuals.
BFA: From a logistical standpoint,
courier companies typically achieve
a first-attempt delivery success rate
of only 67%. Approximately one-third
of the orders are returned on the
same day due to delivery failure.
Veul: Exactly and in addition the cost
of delivery in South Africa is up to
four times higher than it is in average
European or American cities. The advan-
tage of having a designated pickup loca-
tion is that it allows for the utilisation of
pre-existing stores to distribute goods
to customers, rather than struggling to
deliver them to individual addresses.”
BFA: Is it true that Pargo does
not own any vehicles?
Veul: Indeed, we do not possess a
vehicle fleet as we have established
partnerships with pre-existing courier
services. We use them for the purpose
of transporting packages. Our proposed
solution primarily revolves around the
utilisation of technology. What we’ve
found is that the big guys like FedEx,
DSV, and Courier It have invested heavily
in their infrastructure such as ware-
houses, trucks and drivers. The problem
they have is that they’re not always
sure where delivery locations are. We
address this issue by providing a solution
through our network of verified stores
and we also ensure effective communi-
cation and meticulous tracking.
We are primarily a technology-fo-
cused enterprise that operates through
a network of physical pickup locations.
Our analysis indicates that there are ad-
vantages for the collection point too. It is
evident that when an individual retrieves
an item they have purchased online,
they may also make additional purchases
during their visit, so the locations benefit
from the increased pedestrian activity.
We compensate them with a nominal
fee for each order, in addition to a minor
transaction fee that we cover.
Pargo addresses a straightforward
issue: How to deliver a package to an
ordinary citizen of South Africa. That
encompasses individuals residing in
townships as well as those in small or
rural towns, in a manner that is both
affordable and easily accessible. BFA
17
April2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
18. BUSINESS FLEET AFRICA | April 2023
18 WWW.BUSINESSFLEETAFRICA.CO.ZA
TRISTAN WIGGILL
The MAN TGS 26.440 is a heavy-duty
truck manufactured by German
commercial vehicle manufacturer, MAN
Truck and Bus.
The TGS range was first introduced
in 2007 as a successor to the TGA series,
and the TGS 26.440 remains one of the
most popular models in the range today.
It is designed for heavy-duty applica-
tions such as construction, mining, and
long-haul transportation. It is equipped
with a powerful 10.5-litre six-cylinder
diesel engine that produces 440
horsepower and 2 200Nm. This engine
is paired with a 12-speed automated
transmission that offers smooth and
efficient shifting.
The truck also features a rear air
suspension system that provides a
comfortable ride and improved stability,
especially when carrying heavy loads.
In terms of payload capacity, the TGS
26.440 can handle up to 26 tons, thanks
to its robust chassis and axles. It has a
wheelbase of 5 100 millimetres and a
gross vehicle weight of 44 tons, making
it a formidable vehicle on the road.
Desirability as a used vehicle
The MAN TGS 26.440 is a desirable
option as a used vehicle for several
reasons.
Firstly, the truck was designed with
durability and reliability in mind. The
chassis and axles are built to withstand
the rigours of heavy-duty applica-
tions, and the engine is known for its
longevity. This means that even when
buying a used truck, buyers can expect
it to last for many years with proper
maintenance.
Secondly, the MAN TGS 26.440 is
equipped with modern features and
technology which makes it easy to drive
and operate. The automated transmis-
sion, for example, makes shifting gears
smooth and seamless, while the rear air
suspension system provides a comfort-
able ride. The truck also has features
such as cruise control, power steering,
and air conditioning, which makes long-
haul driving more comfortable.
Thirdly, MAN Truck and Bus is a
well-respected brand in the commercial
vehicle industry, known for its quality
and reliability. This means that the
MAN TGS 26.440 has a good reputation
as a reliable and robust truck, which
translates into better resale values.
The TGS 26.440 was designed with
safety in mind and has features such
ABS, ESP and a lane departure warning
system (LDWS), which translates into
safer driving for both the driver and
other road users. These safety features
are particularly important for buyers
who intend to use the truck for long-haul
transportation.
Lastly, the TGS 26.440 was designed
with a spacious and comfortable cabin,
which makes it a desirable option for
drivers who spend long hours on the
road. The cabin features air suspension
seats, a multifunctional steering wheel,
and a modern dashboard that provides
drivers with all the information they
could possibly need.
These features, coupled with the
manufacturer’s reputation for quality and
reliability, make the TGS 26.440 a desir-
able option as a used vehicle for buyers in
the commercial vehicle market. BFA
HEAVY COMMERCIALS
MAN TGS 26.440 stands the test of time
In terms of payload
capacity, the TGS 26.440
can handle up to 26
tons, thanks to its robust
chassis and axles. It has
a wheelbase of 5 100
millimetres and a gross
vehicle weight of 44 tons,
making it a formidable
vehicle on the road.
19. The move toward electric vehicles (EVs)
has gained momentum, particularly in
the northern hemisphere, because of
environmental concerns, cost-effec-
tiveness and developments in battery
technology.
While these play a role in South
Africa as well, the price of fuel is one of
the biggest driving forces here. But, the
question is, are EVs really more efficient?
Yes, according to a Yale Climate
Connections report. The report says in-
ternal combustion engines (ICE) are less
efficient than EVs because of the energy
lost in converting fuel into power.
It adds that ICE vehicles lose between
74 and 85% of their original energy,
which is consumed by heat produced in
the engine, pumps and cooling systems.
Further losses are attributed to mechan-
ical friction.
Energy conversion efficiency
By comparison, electric trucks convert
the electrical energy stored in their
batteries directly into mechanical energy
that powers the vehicle’s electric motor.
This process is more efficient than
the energy conversion process in
diesel trucks, which involves converting
chemical energy from diesel fuel into
mechanical energy through combustion
in the engine. The energy conversion
efficiency of an electric truck can be as
high as 90%.
Regenerative braking
Electric trucks also have the ability to
recover some of the energy lost during
braking through a process known as
regenerative braking.
When the driver brakes, the electric
motor in an electric truck runs in reverse,
which generates electricity and stores it
in the battery. This energy can then be
used to power the truck later, reducing
the overall energy consumption of the
vehicle. Diesel trucks do not have this
feature and instead use friction brakes,
which lose energy in the form of heat.
No idling
Another factor that contributes to the
efficiency of electric trucks is that they
do not need to idle. Diesel trucks need
to idle to keep the engine running and
provide power for the various systems in
the truck. This wastes fuel and leads to
unnecessary emissions. Electric trucks,
on the other hand, can use battery
power to run these systems, eliminating
the need for the motor to be running
when the vehicle is stationary.
Less mechanical complexity
Furthermore, electric trucks have fewer
moving parts than diesel trucks, which
reduces the energy required to operate
them.
Diesel engines require a complex
system of components to function,
including fuel injectors, turbochargers,
and exhaust systems, all of which require
energy to operate. Electric trucks, in
contrast, have simpler systems that
require less energy to operate. BFA
Proven: Electric trucks
are more efficient
19
April2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
HEAVY COMMERCIALS
20. BUSINESS FLEET AFRICA | April 2023
20 WWW.BUSINESSFLEETAFRICA.CO.ZA
TRUCK IMPRESSION
TRISTAN WIGGILL
The JAC X200 1.5-ton CC is an excellent
choice for businesses looking for a reli-
able and affordable commercial vehicle.
The truck is designed to withstand
harsh working conditions, and its
2.8-litre turbo-diesel engine provides
adequate power while consuming an
average of 8.0 litres per 100km. Its
proven performance makes it ideal for
businesses that require their vehicles to
operate in challenging environments.
One of the most notable features
of JAC X200 is its robust chassis and
suspension design, which is designed for
various load box applications. Its chassis
is constructed using a heavy-duty lad-
der-frame design that is strong enough
to support various body applications.
Additionally, its chassis frame is 15%
stronger than other competitors but
20% lighter, making it an ideal choice
for businesses that require a strong and
light cargo vehicle.
The JAC X200 also boasts a large 1.5t
payload capability for both derivatives,
making it easy to transport heavy loads.
Its ultra-flat low deck offers superior
deck clearance, making it easy to load
and unload goods quickly and efficiently.
Its deck clearance is 785mm, 30%
lower than normal light trucks, making
it an ideal choice for businesses that
require a cargo vehicle with a lower deck
clearance.
Its load box measures almost
2.8 metres and supports a load area
of 4 595 mm², making it an excellent
choice for businesses that require a
spacious cargo area. The vehicle also
features three-way drop sides for added
convenience.
The interior is designed with driver
comfort and safety in mind. Its cab
is comfortable and ergonomically
designed, with the ability to legally
transport three people inside. The
vehicle features air-conditioning, electric
windows and mirrors, radio, Bluetooth
and a USB port, making it an excellent
choice for businesses that require a
cargo vehicle with modern amenities.
Driveability is another area where it
shines. Its compact size and minimum
turning radius of 5.75 metres ensure
easy manoeuvrability, making it easy to
navigate through city streets and tight
spaces.
Additionally, its total height is less
than 2 metres when empty, making
parking effortless. Its turning radius
is less than 5.75 metres, and its curb
weight is 20% lighter than a light truck.
JAC X200’s five-speed manual gearbox
provides a smooth and responsive
driving experience.
Safety is also a top priority for JAC
and the X200 features front indepen-
dent suspension, disc brakes, ABS, and
central locking, ensuring that drivers and
passengers are safe and secure while on
the road.
Peace of mind comes from its five-
year/150 000-kilometre manufacturer
warranty, five-year/60 000-kilometre
service plan as well as JAC Roadside
Assistance. This makes maintenance ef-
fortless, and businesses can rest assured
that their vehicles are covered in case of
any unexpected breakdowns.
This truck is an affordable option
for businesses looking to purchase a
commercial vehicle. Starting from R295
565.00 Excl. VAT, the vehicle is cost-ef-
fective and practical for commercial use.
In summary, the JAC X200 1.5-ton
CC is a reliable, efficient, and affordable
commercial vehicle suitable for many
businesses’ needs. Its powerful engine,
robust chassis and suspension design,
large payload capability, and modern
features make it an excellent choice
for businesses that require a cargo
vehicle that can handle harsh working
conditions. BFA
An affordable 1.5-ton option
21. HEAVY COMMERCIALS
Axle tracking is an important consid-
eration for manufacturers, buyers and
operators of heavy truck trailers.
It refers to the alignment of the
wheels on the trailer with the wheels
on the tractor or towing vehicle. Proper
alignment is crucial for the handling,
stability, and safety of the vehicle.
Proper axle tracking ensures that
the trailer is stable and easy to control.
If the wheels are not properly aligned,
the trailer can sway or wander, making
it difficult to steer. This increases the risk
of accidents.
Axle tracking also affects the wear
and tear on the tyres. If the wheels are
not aligned, it can cause uneven wear on
the tyres, which can lead to blowouts or
other tyre failures. This can be especially
dangerous for heavy trailers, which can
cause serious accidents if a tyre bursts
while the vehicle is in motion.
Furthermore, if the wheels are not
properly aligned, it can increase the drag
on the vehicle, reducing fuel efficiency
and increasing wear and tear on the
engine and other components.
Factors that affect axle tracking
Several factors can affect axle tracking.
These include the weight distribution
of the trailer, the height of the trailer,
the suspension system, and the type of
tyres used.
Weight distribution is an important
consideration for axle tracking. If the
weight is not evenly distributed across
the axles, it can cause uneven wear
on the tyres and affect the handling of
the vehicle.
The height of the trailer can also af-
fect axle tracking. If the trailer is too high
or too low, it can cause the wheels to be
out of alignment with the towing vehicle.
The suspension system is also an
important factor. If the suspension is not
properly maintained or adjusted, it can
cause the wheels to be out of alignment.
Finally, the type of tyres used can
affect axle tracking. Different types of
tyres have different profiles and widths,
which can affect the alignment of the
wheels.
Checks and balances
Axle tracking is checked using a variety
of methods. One common method is to
use a laser alignment system, which uses
lasers to measure the distance between
the centres of the tyres on each axle. This
method is quick and accurate and allows
for precise adjustments to be made.
Another method is to use a string
alignment system, which involves running
a string between the wheels on each
axle and checking the alignment using a
measuring tape or ruler. While this meth-
od is less precise than laser alignment,
it is simpler and can be used in the field
without specialised equipment.
Once the axle tracking has been
checked, adjustments can be made to
ensure proper alignment. This is typically
done by adjusting the axles using bolts or
hydraulic systems. The goal is to adjust
the axles so that the wheels are aligned
with the towing vehicle, and the weight is
evenly distributed across the axles.
By ensuring proper axle tracking,
heavy truck trailer operators can ensure
safe and efficient operation of their
vehicles. BFA
Why axle tracking is important
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Super Group won the first Hino Truck
Dealer of the Year award in its history of
more than 36 years when Hino Isando
collected this coveted trophy at the
recent Toyota/Lexus/Hino awards func-
tion in Johannesburg. This dealership,
situated in the industrial and commercial
hub of Gauteng, is one of the largest
in the Hino network, selling more than
300 new trucks a year and servicing an
average of 14 trucks a day.
Dealer Principal Bobby Pringle, who
has been employed in the commercial
vehicle business in South Africa for the
past 26 years, says he has, for a long
time, set his sights on proving that his
dealership was the best-of-the best by
winning the Dealer of the Year award.
As such, he led the drive for excellence
from the front in 2022 and received
the full and enthusiastic backing
of his team, which now numbers
32 employees.
“I have aligned my management
team so that I can track their progress
continually in terms of the Hino Dealer
of the Year performance measuring
tool, which is known as the Pyramid
of Excellence. We got close in 2019,
when we were runner-up and sold the
most Hino trucks in that year too,”
explained Pringle.
“Each of our departments – Sales,
under Bryan James; Service, headed
up by Kyle Buys; and Parts, under the
leadership of Darrell Pretorius – were
set annual targets with a stretch aspect
to ensure they went the extra mile. I
am proud to say that we achieved 100 –
109% in meeting our sales, service and
parts targets set by Hino SA and all our
staff members contributed solidly to the
overall performance of the dealership,”
said Pringle.
“Outstanding customer service is
cardinal in winning the Dealer of the Year
title and so we went above and beyond
to over-deliver to each of our customers,
even in the tough times when stock was
short after the Hino plant in Prospecton
was hit by the KZN floods last April,”
continued Pringle.
“We make use of various incentive
programmes to reward productive staff,
while all employees qualify for an annual
incentive based on the overall perfor-
mance of the dealership,” added Pringle.
Hino Isando is currently the only
Hino dealership owned by Super Group
and is comparatively young as it was
only established in 2015. It was the 22nd
exclusive truck dealership in the Hino
national network of 64 dealers. The cost
of setting up Hino Isando – excluding
the price of the land – was more than
R25 million. The original staff comple-
ment was 17, with many still employed
at the dealership.
Pringle says he is very pleased that
approval has now been given to add a
further six working bays and a state-of-
the-art, eco-friendly wash bay to the
dealership which will be welcomed by
the customers.
Currently the facility has six double
work bays and the workshop is equipped
to undertake Certificate of Fitness (COF)
testing and has an express service lane
to minimise downtime when urgent
servicing or repair work is required.
The dealership has an extensive parts
stock, and this is replenished at least
twice a day. From the outset eco-friend-
ly measures were put in place, such as
motion sensor lighting and the use of
recycled water for the wash bay.
Pringle has won a host of awards in
his career and is determined to retain
the Dealer of the Year trophy. “I always
ensure that we aim higher and we will
continue to strive to provide even higher
levels of service to our customers,” said
the Hino Isando Dealer Principal.
“Bobby Pringle is a true Hino
ambassador who continuously motivates
his team. He embraces the Hino Total
Support strategy and the team at the
dealership is always willing to walk the
extra mile to ensure total customer
satisfaction,” said Leon Theron, Senior
Vice President – Sales and Marketing
at Toyota SA Motors, speaking at the
award ceremony. BFA
Hino Isando wins
Dealer of the Year
HEAVY COMMERCIALS
Dealer Principal of Hino Isando, Bobby Pringle,
proudly displays the Hino Dealer of the Year
trophy he received at the recent Toyota SA
Motors’ awards function. He is flanked by (from
left) Leon Theron, Senior Vice President TSAM;
Andrew Kirby, President and CEO TSAM, and Nick
Fujioka, General Manager, Hino Motors Ltd.
The Hino Isando team which won the coveted Hino Dealer of the Year award.
23. Keep every aspect of your fleet, Always Visible.
Transport Logistics
With Ctrack’s 35 years experience, we can help you unlock
better diagnostics, support compliance reporting, as well
as provide tailormade analytics for both short term, and
long-term decision making. Ctrack will optimise the right
solution for your specific business needs.
Iris Camera Solution
Front-Back-Side Facing Camera
Options
In Cab Device
• Job Dispatch
• Navigation
• Messaging
• Driver Behaviour Display
Asset Monitoring
Trailer Tracking
Driver Identification
Driving Behaviour Monitoring
Engine Performance
Monitoring (CAN)
Temperature Monitoring
Remote Door Unlocking
Door Open/Close Sensor
Fuel Level
Consumption Monitoring
Vehicle Fleet Tracking
Keep your eyes on the road
www.ctrack.co.za | sales@ctrack.com | Call Centre: +27 (0)860 333 444
Always
Visible
24. BUSINESS FLEET AFRICA | April 2023
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SUPPLY CHAIN AND LOGISTICS
Using autonomous negotiations, Walmart successfully closed
deals with 68% of its suppliers in the US, Chile, and South
Africa, generating an average savings of 3%.
Procurement leaders rely on the same standard playbook as
the rest of the world and continue to anticipate a recession: cut
indirect expenses, consolidate spend and force better payment
terms. But this strategy often results in win-lose supplier
negotiations, strained customer relationships and burnt-out
employees, leading to further financial hardship.
A negotiation strategy fuelled by artificial intelligence
Martin Rand is the Co-Founder and CEO of Pactum, a company
which automates negotiations and interactions with suppliers
and service partners using advanced AI. According to Rand, a
negotiation strategy fuelled by artificial intelligence provides
a holistic approach to managing economic hurdles, positively
impacting the bottom line. But to avoid financial losses in 2023,
procurement must influence the finance department to rethink
its approach to negotiations. Finance leaders must consider
the procurement function as a department that can deploy an
AI-based system to weather economic uncertainty.
Successfully navigating economic turmoil begins and ends
with an effective negotiation strategy. Negotiations are ubiqui-
tous and the basis for all enterprise value creation, yet most are
mismanaged.
Inefficient contract agreements
Global enterprises have millions of dollars locked up in
inefficient contract agreements because their procurement de-
partments only have the time and resources to actively manage
20% of supplier contracts. The other 80% are overlooked.
Historically, humans are the primary negotiators, reaching
out to each supplier to negotiate price, supply security and
other tradable terms. The problem, however, is that the pace at
which the global macro-environment changes and the amount
of data available to procurement teams are too complex for
humans alone to comprehend. It can take humans 100 hours to
prepare for a single negotiation, this is not feasible when tasked
with managing tens of thousands of suppliers.
PWC estimates that AI investment will add $15.7 trillion to
the global economy by 2023. AI negotiations have enormous
potential to revolutionise how businesses negotiate.
ChatGPT burst onto the scene in late 2022, showing
the world endless possibilities for AI to make organisations
more efficient. Specifically, by using an AI-powered chatbot
interface, teams can integrate autonomous negotiation
technology into their tech stack, allowing them to draw on
AI and negotiation science to reach mutually beneficial deals
with suppliers every time.
Best bottom-line value in the shortest amount of time
Walmart is one of many Fortune 500s using intelligent chat-
bots to automate supplier-contract negotiations. The chatbot
reaches out to suppliers via e-mail, asking specific questions
and offering options to understand the suppliers’ needs and
preferences better. It then negotiates based on predefined
trade offs, developing optimal agreements for both parties.
Using autonomous negotiations, Walmart successfully closed
deals with 68% of its suppliers in the US, Chile, and South
Africa, generating an average savings of 3%.
Most importantly, autonomous negotiations allow business-
es to secure the best bottom-line value in the shortest amount
of time. Instead of renegotiating annually, these negotiations
can be initiated on an ad-hoc basis as the economy fluctuates,
allowing businesses to be more agile.
Ensure buy-in
People drive transformation. Without end-user buy-in, AI
innovation will fail every time with today’s economic forecast.
The first step to success is demonstrating how autonomous
negotiations increase revenue, improve supplier relationships,
and enhance procurement productivity.
Additionally, while AI can help pared-down procurement
teams do more with less, employees must understand that this
transition won’t render them obsolete.
Precisely define your negotiation strategy
Upon gaining end-user buy-in, you must align your negotiation
strategy. What do you want to improve (say, payment terms),
and what are you willing to trade (such as termination notices)?
As the chatbot interacts with your suppliers and learns their
specific preferences, it will create counter offers based on your
predefined trade offs. To ensure mutually beneficial agreements
are consistently met, be specific about the terms you are willing
to accept.
Think big, start small
Once your strategy is in place, introduce the chatbot to
a few pre-approved suppliers to test the effectiveness of
your set script and trade offs. Based on supplier feedback,
make the necessary adjustments to the AI and scale the
program. The more interactions the chatbot has, the more
it learns and the more valuable it will become for supplier
negotiations.
The value of autonomous negotiations goes beyond the
immediate impact on one business. The technology can create
value across the entire economy and maybe even increase the
world’s GDP by creating new value in contract agreements and
moving supply chains closer together. BFA
Procurement’s new recession-proofing
strategy: autonomous negotiations
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Hybrid retail demands a rock-solid last-
mile delivery partnership. Nowadays, it’s
a universal truth that customers won’t
buy from a retailer again if the delivery
service is poor, especially in the age
of hybrid shopping, where consumers
favour brick-and-mortar and online
purchasing for the different options and
conveniences they present.
Choose your partner wisely
The importance of efficient delivery is
common to both, as even the slightest
issue can leave people running for the
hills. Retailers must do their homework
when choosing the right delivery part-
ner. Shaunei Gerber, Product Marketing
Manager at South African innovative
logistics platform Pargo, says business
owners should consider several key
aspects when assessing who to partner
with. The first is the price to the consum-
er, she says.
Delivery pricing strategy
“Your checkout delivery pricing strategy
needs to make sense to your consumer.
If not, consider affordable delivery meth-
ods like Click Collect, where orders are
placed online and then collected from a
designated pickup point, in order to best
serve your target market,” adds Gerber.
Customer convenience is key
The correct delivery partner should also
be committed to customer convenience
and understand that consumers don’t
want a delivery method requiring them to
use more valuable time than necessary.
Last-mile delivery is crucial
Gerber emphasises that last-mile deliv-
ery partners should be doing most of the
work. “You should spend 80% of your
time on growing your business and only
10% on administrative tasks. Don’t let
your delivery partner occupy more than
5% of your time.” The correct delivery
partner should also make liberal use of
technology to serve all South Africans,
no matter where they live.
Use referrals to find new suppliers
There are several effective avenues
retailers can explore to find promising
candidates. Referrals remain an excellent
way to meet and network with new sup-
pliers. At the same time, word of mouth
gives a brand credibility through those
who have experienced services and
products first-hand singing its praises,”
says Gerber.
“Taking note of thought leaders and
experts who the media deem notable
and topical gives you a good idea of how
well they know their product, the market
they serve and the problems they solve,”
adds Gerber.
Second-best is not good enough
Throughout this ‘recruitment’ process,
retailers should always ensure that
they never settle for second best. The
logistics brand must be established and
well-versed in the last mile to avoid con-
sumer-friction risks, including delivery
delays, missing parcels or otherwise
problematic deliveries.
Last-mile specialists have spent years
understanding consumers’ online buying
behaviour and working with the best cou-
riers to deliver excellent service. “With
the right technology, courier partners and
communication tracking strategy, your
business will be set up for success when it
comes to the final mile,” says Gerber.
Test the delivery journey
You need to walk in your customer’s
shoes and test the delivery journey,
making sure that the solution is well
positioned at every customer touch
point to keep shoppers informed every
step of the way. There needs to be
communication and transparency, just
as in any profitable business.
Grow with your delivery partner
“Above all, your delivery partner should
be willing to grow with you, meaning
understanding how technology is evolv-
ing, how processes are changing and
making an effort to be fluid in providing
solutions to any challenges that may
occur,” concludes Gerber. BFA
SUPPLY CHAIN AND LOGISTICS
Finding the right supply chain partner
You should spend 80% of
your time on growing your
business and only 10%
on administrative tasks.
Don’t let your delivery
partner occupy more
than 5% of your time.
26. FLEET MANAGEMENT
ESG is a framework for understanding
how organisations manage factors and
opportunities related to Environmental,
Social and Governance criteria and,
as such, attempts to create a holistic
view that sustainability extends beyond
environmental issues. These three
factors are becoming increasingly critical
in business as investors, shareholders,
and potential partners use these factors
to identify risks and growth opportuni-
ties before deciding if this is the kind of
operation they want to do business with.
While ESG is a relatively new term, it
has, in fact, evolved from other historical
movements which have for many years
focused on health and safety issues,
pollution reduction and corporate
philanthropy and as before a significant
component of ESG is a business’s rela-
tionship with the environment and the
strategies they have in place to reduce
its impact on the environment.
As a result, businesses now have a
responsibility to apply these principles
and improve on these aspects where
they can. However, there is currently no
standardised approach to calculating or
presenting these different ESG metrics,
and investors can employ a variety of
analytical approaches and data sources
to address ESG considerations.
While there is still uncertainty on
the calculation or presentation of these
metrics, what is clear is the increased
Ctrack’s Crystal platform
can assist in managing your
fleet’s carbon footprint
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need for good data on all facets of a
business because it is only possible to
control or improve on factors that can
be measured.
Ctrack’s Crystal software is the per-
fect partner for any business that utilises
vehicles or movable assets and wants
to improve their environmental impact.
Ctrack’s 35 years of experience in the
field of telematics and fleet manage-
ment sees them utilise a well-developed
hardware and software ecosystem to
give their customers quality data that
is easy to understand and base their
decision-making on.
“Crystal can utilise our existing hard-
ware and software solutions to effec-
tively assist businesses in measuring and
improving on various environmental,
social and governance parameters,” says
Hein Jordt, Chief Executive Officer of
Ctrack Africa.
This newly developed, cutting edge,
software has the capability to utilise
OEM vehicle fuel data allowing for the
reporting of carbon emissions. Fleet
managers can monitor their fleets’ C02
by
setting up their fleets’ emission factor in
Crystal and then monitoring performance
via emission reports. This allows for the
retrospective calculation of a fleet’s
carbon footprint, giving fleet managers an
accurate picture of their past and current
impact on the environment as well as
the tools to improve going forward and
helping to identify opportunities to save
energy and reduce costs.
“CO2
emissions are directly related to
a vehicle’s fuel consumption and the way
that it is used, and Ctrack has well-devel-
oped solutions in place to monitor and
improve on these factors,” says Jordt.
The tools that Ctrack have in place
to save businesses costs on fuel and
maintenance can just as easily be used
to monitor and control various factors
related to ESG principles. Fuel consump-
tion will be reduced by managing factors
such as unnecessary speeding and idling.
The more fuel efficient a vehicle is, the
less carbon emissions it produces, which
ticks the environmental box.
Fuel consumption is easily managed
by speed limiting, and Ctrack can also
monitor speed in a variety of ways,
including map speed, a predetermined
speed limit on a telemetry device or via
a physical speed limiter on the vehicle.
If needed, Ctrack SMILE technology can
adjust a vehicle’s top speed capabilities
based on predetermined Geo zones.
Drivers who breach road regula-
tions risk their own safety, the safety
of others and cause additional costs
such as fuel, maintenance, insurance
and even traffic fines. The Crystal
driver behaviour monitoring and driver
scoring functionalities further assist
with reducing CO2
emissions and saving
costs. Driver coaching can rectify cases
where vehicle engine speed is higher
than necessary.
“Ctrack are perfectly poised to
assist our users in managing their
ESG requirements thanks to years of
experience in the collection of data
and presenting it in a usable format,”
concludes Jordt. BFA
28. ROAD SIGNS
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Volkswagen is reaffirming its commitment
to the development of the automotive
industry in Ghana with the opening of a
new vehicle assembly facility in Accra.
Volkswagen is also taking over the
new vehicle assembly responsibility from
its licensed importer in Ghana, Universal
Motors Limited (UML). UML was awarded
the assembly contract when Volkswagen
officially established Volkswagen Ghana,
a 100% Volkswagen subsidiary, in August
2020. UML assembled models such as
Tiguan, Teramont, Passat, Polo, Amarok
and T-Cross on behalf of Volkswagen us-
ing Semi-Knocked Down (SKD) assembly
kits imported from South Africa.
The new 5 000m² vehicle assembly
facility is located near the Port of Tema
in Accra. It has an installed capacity to
assemble 5 000 units per annum. The
facility will assemble the T-Cross, Tiguan,
Amarok and Virtus. Initially, the new
assembly facility will create about 80
jobs, including local third-party service
suppliers.
Volkswagen was the first automo-
tive company to be registered under
the Ghana Automotive Development
Programme (GADP), and this new invest-
ment strengthens the brand’s presence
in the country and the region.
“Ghana is an important market for
our Sub-Saharan Africa expansion plans,
especially in West Africa, where we have
identified opportunities of developing a
collaborative automotive industry hub
amongst the countries in the region. The
hub concept will ensure that each country
with an automotive development policy
or economic interest in the automotive
industry has an important role in the sup-
ply value chain. We believe AfCFTA will be
the catalyst to unlock trade barriers and
promote regional collaboration amongst
the countries,” said Martina Biene,
Chairperson and Managing Director of
Volkswagen Group South Africa.
“As the last frontier for the global
development of the automotive
industry, Sub-Saharan Africa has become
very important for the sustainability of
Volkswagen. We are therefore accelerat-
ing our growth strategy on the continent
by playing a pioneering and leading role
in the development of the automotive
industry,” commented Biene. BFA
Volkswagen’s new assembly
plant in Ghana
The new Fuel Max 1AD is Goodyear’s best
premium super-regional single-axle drive
tyre and is now available in 295/75R22.5
Load Range G. The tyre is made with an
innovative tread design and incorporates
features and compounds meant to offer
long miles to removal.
The Hybrid Lug-to-Rib Tread
Pattern enhances traction and helps
improve rolling resistance while
delivering more wearable rubber for
longer tread life. The High Waffle Blade
Density pull point throughout the centre
and shoulder ribs helps achieve 3PMSF
traction and stiffens tread for long miles
to removal. BFA
New Goodyear Fuel Max 1AD Tyre
Stellantis plans to establish a large manufacturing facility in
South Africa to sell 1 million vehicles annually in the region by
2030. The automaker signed a Memorandum of Understanding
(MOU) with the Industrial Development Corporation (IDC) and
the Department of Trade, Industry and Competition (the dtic)
to develop a manufacturing facility in South Africa.
The manufacturing plant is planned for setup in a South
African Special Economic Zone (SEZ). The aim is to complete
this manufacturing project by 2025.. BFA
Stellantis to manufacture
vehicles in South Africa
Seated left to right: TP Nchocho, CEO of the IDC; Malebo Mabitje-Thompson,
Acting Director General of the dtic; Leslie Ramsoomar, Managing Director for
Stellantis South Africa. Standing left to right: Ebrahim Patel, Minister of Trade,
Industry and Competition; Samir Cherfan, Stellantis COO for Middle East and
AfricaVolkswagen’s new assembly plant in Ghana
From left: Jeffrey Oppong Peprah, CEO for
Volkswagen Ghana, Ghana’s Minister of Trade and
Industry Samuel Abu Jinapor, and Martina Biene,
VWSA Chairperson and Managing Director.
INDUSTRY NEWS
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Toyota has developed new electrolysis
equipment to produce hydrogen from
electrolysing water using the fuel cell
(FC) stack and other technology from
the Mirai. The equipment will be put
into operation at a DENSO Fukushima
Corporation plant, which will serve as a
technology implementation venue to pro-
mote its widespread use going forward.
More than 90% of FC stack compo-
nents for FCEVs and FC stack production
facilities can be used in the PEM
electrolysis stack production process.
This will allow for mass production to
achieve a cost level that enables its
widespread use. BFA
South Africa LNG and helium producer Renergen expects to
begin work on its second phase later this year. The company is
also targeting a US IPO later this year. Phase 2 will cost $1.16
billion over the next three years, with the company aiming to
reach a level of commercial operations by 2026.
Renergen plans to list in the US in this year’s second or
third quarter and has already submitted a draft registration
statement. “We see a US listing as helping Renergen access
much deeper liquidity in North America, especially as it’s
primary customers and lender are US based. The move would
reduce the share price discount, and the company would be
the first helium producer on NASDAQ. The listing in the US
would be a natural progression for Renergen,” said a company
spokesperson. BFA
Renergen Targets US IPO
Toyota develops electrolysis equipment
for the production of hydrogen
Hydrogen takes centre stage in
race between FCEVs and BEVs
The total cost of ownership (TCO)
of platinum-based hydrogen fuel cell
electric vehicles (FCEVs) is forecast to be
less than that of battery electric vehicles
(BEVs) by 2026 and less than that of
internal combustion engines (ICEs) by
around 2027, with an overall estimated
50% FCEV cost decline in the next ten
years, according to a recent report in
Engineering News.
A study by Deloitte and Ballard
entitled ‘Powering the Future Mobility’
provides answers to the economic
viability of FCEVs. It highlights
hydrogen as once again taking
centre stage in
humanity’s quest
for energy sources. BFA
Cow manure converted into fuel
New Holland Agriculture announced
a new tractor designed to run on fuel
created on-site using cow manure. The
T7 Methane Power LNG offers the same
power and torque as a diesel tractor. The
system works like this: farmers collect
as much cow manure as possible as a
slurry, and instead of directly using it as
fertilizer, they pump it into large tanks.
Anaerobic organisms break it down and
produce biogas that contains mainly
methane.
This gas is collected and purified
into biomethane, which can be used
around the farm wherever natural gas
is typically used. Alternatively, it can be
compressed and liquefied into LNG (liq-
uefied natural gas). It is the world’s first
tractor designed to run on LNG, allowing
farmers to create their own fuel. BFA
30. BUSINESS FLEET AFRICA | April 2023
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TYRES
A good tyre casing is an essential component of a tyre that is
suitable for retreading. The casing is the tyre’s inner structure
that provides support and shape to the tyre, and it must be in
good condition to ensure a successful retread.
Here are some of the characteristics of a good tyre casing:
Structural integrity
The tyre casing must be structurally sound, with no cuts,
punctures, or damage that could compromise its strength
and stability. The casing should be able to withstand the
pressure and stresses of the retreading process and subse-
quent use.
Age
The age of the tyre casing is also an important factor. The older
the casing, the more likely it is to have degraded and lost some
of its structural integrity. Most tyre manufacturers recommend
using casings that are less than 10 years old.
Ply rating
The ply rating of the casing refers to the number of layers
of fabric or steel in the tyre’s structure. A casing with a
higher ply rating is generally more durable and suitable for
retreading.
Materials
The materials used in the tyre casing can also affect its suitability
for retreading. Tyres with steel casings are generally more dura-
ble and easier to retread than those with fabric or nylon casings.
Tread wear
The amount of tread remaining on the casing is also important.
The casing must have enough tread left to provide a suitable
base for the new tread to be applied.
Previous repairs
The location and type of any previous repairs can also affect
the casing’s suitability for retreading. Repairs in the sidewall or
shoulder areas may make the casing unsuitable for retreading.
Usage conditions
The conditions in which the tyre was used, such as the type
of road surface and the weight of the load it carried, can also
affect the casing’s suitability for retreading. BFA
A strong case for retreading
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BRANDING
Are you looking for an effective way to take your business to
the next level? Then look no further than fleet vehicle branding.
Branding is the process of adding graphics, logos, and
messaging to your company vehicles. In doing so, you promote
your brand to potential customers.
This can include anything from a simple logo and contact
information to a full vehicle wrap. The latter can cover the
entire vehicle with eye-catching graphics and messaging.
The goal is to turn your company vehicles into awareness
generators as they drive. This can be especially effective for
businesses that have a lot of vehicles. Delivery companies,
service providers and contractors are all good candidates.
Branding is possible on cars, trucks, vans, and even trailers.
The key is to choose vehicles that are visible and recognis-
able. Potential customers must identify your brand as your
vehicles drive.
There are many benefits to fleet vehicle branding, including:
Increased brand visibility
Through vehicle branding, you can reach a wider audience.
Many may not be aware of your business.
Cost-effective advertising
Fleet vehicle branding is a cost-effective way to advertise
your business. Once you’ve invested in the initial design and
installation, you are good to go for years to come.
Increased professionalism
Fleet vehicle branding can also help to increase the profession-
alism of your business. A modern logo and contact information
indicates a legitimate business. It also creates the impression
that the company takes pride in its appearance.
Competitive advantage
Fleet vehicle branding can give you a competitive advantage.
You can stand out from the competition and attract more
customers to your business.
Choosing the right vehicles for branding
When it comes to fleet vehicle branding, the first step is to
choose the right vehicles for your business. Choose vehicles
that are recognisable and well-suited to your business needs.
For example, delivery companies need vehicles that are large
enough and designed for heavy use. Landscaping businesses on
the other hand, need trucks or vans designed for off-road use.
They must have plenty of storage space for equipment, too.
With the right vehicles, you can start thinking about the
design and messaging that will go on them.
Smaller vehicles and motorbikes are usually better suited to
vehicle lettering or decals. Larger vehicles such as trucks and
buses may fare better with full, three-quarter or half wraps.
Design eye-catching graphics and messaging
Effective fleet vehicle branding uses eye-catching graphics
and effective messaging. When designing your branding, it’s
important to keep the following in mind:
Q
Q Branding should be easy to read and understand, even at a
distance.
Q
Q Branding should be unique and memorable.
Q
Q Branding should be consistent with your brand image. Use
the same colours, fonts, and design elements on all vehicles.
The importance of proper installation and maintenance
Professional installation is important. Improper installation or
maintenance can lead to fading, cracking, or peeling. This can
lead to your vehicles looking unprofessional and decreases the
branding’s effectiveness. Regular maintenance will ensure that
your branding looks its best and remains effective.
Measuring effectiveness
Finally, it’s important to measure the effectiveness of your fleet
vehicle branding. Track website traffic, check phone calls and
inquiries, or conduct customer surveys. By measuring effective-
ness, you can improve and maximise your impact.
Branding services
There are many companies that offer fleet vehicle branding ser-
vices. These companies help you design, install, and maintain
your branding. BFA
All about fleet vehicle branding
32. BUSINESS FLEET AFRICA | April 2023
32 WWW.BUSINESSFLEETAFRICA.CO.ZA
BRANDING
Vehicle branding is a marketing strategy
that has gained popularity in recent years,
especially amongst companies that have
fleets of vehicles. It involves the use of
graphics, logos, and other visual elements
to create brand awareness and promote a
company’s products or services.
Here are five benefits you get from
branding your vehicle fleet:
Increased brand visibility
One of the most significant benefits of ve-
hicle branding is increased brand visibility.
When a company’s vehicles are branded,
they become moving billboards that can
be seen by thousands of people every
day. This exposure can help to increase
brand recognition and awareness, which
can lead to more business opportunities.
Cost-effective advertising
Vehicle branding is a cost-effective way
to advertise a company’s products or
services. It is a one-time investment that
can provide long-term benefits. Unlike
other forms of advertising, such as
television or radio ads, vehicle branding
does not require ongoing payments.
Professional image
Branded vehicles can help to create a
professional image for a company. They
show that the company is serious about
its business and is willing to invest in its
branding. This can help to build trust
with potential customers and make the
company more attractive to business
partners.
Competitive advantage
Vehicle branding can give a company a
competitive advantage over its com-
petitors. Branded vehicles are more
memorable than unbranded ones, and
they can help to differentiate a com-
pany from its competitors. This can be
especially important in industries where
there are many competitors offering
similar products or services.
Increased employee motivation
Vehicle branding can have a positive
impact on employee motivation. When
employees drive branded vehicles, they
feel a sense of pride in their company
and their work. This can lead to increased
motivation and productivity, which can
benefit the company in many ways.
In conclusion, vehicle branding is a
powerful marketing strategy that can
provide many benefits for companies
with fleets of vehicles. It can increase
brand visibility, provide cost-effective
advertising, create a professional image,
give a competitive advantage, and in-
crease employee motivation. If you have
a fleet of vehicles, consider investing in
vehicle branding to reap these benefits
and grow your business. BFA
The benefits of vehicle branding