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Africa|Business|REA|System|Systems|transport|Trucks
Africa|Business|REA|System|Systems|transport|Trucks
africa|business|rea|system|systems|transport|trucks

Bus market looking to BRT tenders for growth, says MAN

14th January 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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South Africa’s bus market ticked up only marginally in 2012 over 2011, with any substantial growth in the market for 2013 linked to local government moving ahead with the continued roll-out of bus rapid transit (BRT) systems, says MAN Truck & Bus South Africa (SA) joint CEO Ray Karshagen.

The large bus market in South Africa numbered 986 units in 2011, growing to 1 071 in 2012.

MAN Truck & Bus SA has a 46% share in the bus market, through its MAN and Volkswagen bus brands, and sold around 500 units in 2012, up from 459 in 2011.

Karshagen says the City of Johannesburg has indicated that it wants more than 130 buses for its Rea Vaya BRT system, with Cape Town hoping to secure more than 100 buses for its MyCiti public transport network. Tshwane is due to issue a tender for buses for its new BRT network in February.

MAN expects Ekurhuleni and Rustenburg to roll out their BRT systems in 2015 and 2016 respectively.

“We expect to see some major investments in the bus industry [in 2013],” notes Karshagen.

MAN Truck & Bus SA saw a slight slowdown in its truck business to 1 900 units in 2012, down from 1 919 units in 2011.

Last year was not an easy year for the local arm of the German manufacturer, especially on the back of a weakening rand, says MAN Middle East and Africa sales region CEO Markus Geyer.

MAN Truck & Bus SA joint CEO Bruce Dickson adds that none of the company’s traditional big customers – buying 80 to a 100 trucks a year – came to the market in 2012, instead stalling their purchases until 2013.

MAN exports into sub-equatorial Africa had a bumper 2012, however, almost doubling sales from 2011 numbers.

“We expect to almost double this again in 2013,” says Geyer. “This is a strategic business for MAN, and we will continue to grow this in the years to come.”

The German manufacturer sold 183 trucks in sub-equatorial Africa in 2011, expanding to 333 in 2012, with sales of 580 units expected in 2013. Bus sales grew from 26 units in 2011, to 55 in 2012, with sales set to reach 113 units in 2013.

Edited by Creamer Media Reporter

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