Blog - May 2024
Not long ago I made the comment that the Motor Industry will change more in the next ten years than the previous hundred years! Now, how do i support this point?Mercedes-Benz Trucks has successfully charged an eActros truck at a whopping 1,000 KW. For the internal test, a prototype Mercedes eActros 600 truck was used, which has a 600 kWh battery. Peter Ziegler, Head of E-Charging Components, Mercedes-Benz Trucks, says the company is now working to take the “Mega Watts Charge” technology into production of the eActros 600.The launch of the series production of the eActros 600 is planned for the end of this year. Needless to say, not for SA yet! The eActros 600 is expected to achieve a range of 500 km. When you factor in the legally prescribed driver breaks in Europe, Mercedes says this means the truck will be able to travel more than 1,000 km per day (since it would be charging while the driver takes the mandatory rest)Reflecting on the new vehicle sales statistics for the month of April 2024, it came as a pleasant surprise to see growth in the new vehicle market after eight consecutive months of decline. Total domestic new vehicle sales in April 2024, at 38,172 units, reflected an increase of 814 units, from the 37,358 vehicles sold in April 2023. Scary to see that export sales recorded a decline of 7,355 units, or 23,9% units in April 2024 compared to the 30,749 vehicles exported in April 2023.Sales for medium and heavy truck segments of the industry reflected a sound performance for April 2024 at 590 units (mediums) and 1,964 units (heavies) respectively, which is an increase of 33 units, or 5,9% in the case of medium commercial vehicles, and in the heavy trucks and buses segment an increase of 241 vehicles, or 14,0%.A full month of no loadshedding could also have played a part in the positive performance in the new vehicle market during April 2024. After the upcoming May 2024 national elections and once the interest rate cutting cycle starts,- (likely during the second half of the year) prospects for the new vehicle market are anticipated to improve.On 1May both grades of petrol rose by 37 cents per litre, while diesel came down by between 30 cents, in the case of 500ppm, and 36 cents for the lower-sulphur 50ppm. The Department of Mineral Resources and Energy says May`s fuel price adjustments came in the wake of a weaker rand and higher crude oil prices.The Commodity transport industry is also going through a tough period with literally hundreds of trucks and “side tipper inter-links” standing parked off in transporters yards due to the “slump” in that Industry.The South Africa`s mining sector must urgently look for structural reform to regain competitiveness and relive its investment attractions.For more than a century, the mining sector has been an essential component of South Africa`s economy,contributing approximately 7.5% to the gross domestic product (GDP) and representing roughly 60% of the nation`s exports by value.Over the past year, the mining sector saw profits decline by nearly a whopping R100 billion due to the challenging operating environment, as well as lower commodity prices.Impala Platinum Holdings Limited (Implats) has initiated a Section 189(3) consultation process at its South African operations and aims to cut roughly 3,900 jobs, adding to the thousands of jobs already cut in the sector.Implats is not the only miner to cut jobs, - Sibanye Stillwater is also preparing to cut 4,000 jobs.Gerrie Fourie CEO of Capitec commented earlier this week that retrenchments in the mining sector is highly likely to increase, unlike many other parts of the economy.The sector has not only been hit hard by commodity price pressures, but also the challenges at Transnet`s rails and ports, limiting their ability to export their products.On the 29th of South Africans will go to voting stations to celebrate the 30th anniversary of South Africa’s first democratic elections. Most South Africans do not earn enough to meet their basic needs and unemployment have increased, basic services like water and electricity are unreliable, and political corruption has left many fed up with the country’s democracy.All this has placed the African National Congress, the liberation party that has governed since the start of South Africa’s democracy, under more pressure than ever before.May is a season changer in South Africa and we at CLC Trucks wish all our Customers, Suppliers and Staff a nurturing Autumn with lots of good business!-Cobus Lourens-