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24 February 2023

DAF: destined for great things in 2023

2023 is set to be an outstanding year for the DAF brand in South Africa. That’s according to Marius Barnard, managing director of Babcock's Transport Solutions business (Babcock is the sole importer and distributor of DAF trucks and parts in South Africa).

DAF: destined for great things in 2023

 

He points out that the local success comes off the back of an outstanding year for the brand globally. “DAF increased its European market share in the 16+ tonne segment to a record 17.3% (2021: 15.9%) and achieved market leadership in the United Kingdom (31.1%), the Netherlands (32.5%), Belgium (23.6%), Poland (22.4%), Hungary (24.4%) and Bulgaria (26.4%). DAF continued its market leadership in the European heavy-duty tractor segment and is the leading imported brand in Germany,” reveals Barnard.

 

He attributes the success to three factors. “Firstly, massive impetus was created by the fact that DAF won the International Truck of the Year award two years in a row. (The DAF XF/XG/XG+ came up trumps in 2022 while the DAF XD received the award in 2023.) That was a very impressive achievement indeed. Secondly, there is the build quality and reputation of the brand. Thirdly, there is an increase in demand for DAF trucks in Europe as they are the preferred choice for drivers due to the vehicles’ comfort and driveability,” Barnard notes.

 

DAF’s engineers also played a role, he believes. “DAF’s engineers took advantage of the new dimension allowance in Europe and improved aerodynamics with an additional 10% fuel saving. Thus, the trucks are the most fuel efficient and offer the best total cost of ownership offering – traits that are welcomed by our South African customers.”

 

Naturally, Barnard would like to replicate that sales success in South Africa. “In 2021, we achieved record-breaking unit sales of new trucks. This success demonstrates our commitment to meeting the high demand for our products. In 2022, despite the challenging market conditions, we have been able to meet the needs of our customers thanks to our strong partnership with DAF, which allows us to sell every single truck we receive. Our dedicated team at Babcock looks forward to continuing to provide our customers with exceptional products and service in the years to come,” explains Barnard.

 

Barnard says demand for the DAF brand is at an all-time high in South Africa. “We’re experiencing high demand. The customers tell us that they want the trucks because of the premium build quality and a believable and reliable aftersales network. Furthermore, they tell us that it’s the best truck they have ever owned,” he says.

 

Barnard is focused on achieving impressive sales numbers in the next few years. “While the range may be limited to two models, this allows us to concentrate our efforts on providing the best possible products and service to our customers. Our priority is not market share, but rather delivering exceptional value to our clients. By maintaining this focus and commitment, we are confident in our ability to continue exceeding our sales targets and expanding our presence in the industry,” he says.

 

Some of those sales will be driven by new model launches and, for now, those will be trucks with internal combustion engines. “We are excited to announce that new model launches will be driving some of our sales in the coming years. While these models will initially feature internal combustion engines, we are committed to exploring more environmentally friendly options in the future.

 

“We are looking forward to the XG being available in 6x4 guise, which is set to arrive by 2025. Our strategy is to offer both Euro 3 and Euro 6 options to give our customers more choice. While the market for electric trucks may still be limited in South Africa due to the lack of government rebates, we remain open to new technology such as hydrogen fuel cells as a promising alternative. We are dedicated to staying ahead of the curve in the industry and providing our customers with the latest and most innovative products,” he says.

 

Two other extremely significant truck launches could happen in South Africa soon as well. “It’s too early to comment; we will inform customers as soon as it is appropriate,” Barnard comments.

 

What he can confirm is that Babcock's plans for a CKD plant are progressing well. “We are one step closer to making this a reality. Our team has done thorough costings and preparations, and we are confident in the viability of this initiative. We look forward to sharing more updates on this development in April, when we will announce the timeline for building the CKD plant,” says Barnard.

 

Other points of focus are aftersales, parts availability and expansion of the dealer network. “We want to have extremely happy customers who have profitable businesses – and these three aspects are central to delivering on this.”

 

In the last two years, Babcock has opened its own standalone dealer facility in Kraaifontein in Cape Town. “Situated in the Kraaifontein Industrial area, the new facility is conveniently sited right off the N1, enabling customers quick and easy access in and out of the premises. We are also very close to getting a new head office and dealership on the N12 in Johannesburg with highway frontage,” says Barnard.

 

Considerable work has been done on buybacks. “We now have our buyback guarantee in place on a cash purchase or a purchase via any commercial bank. There are no stipulations – like you have to buy another truck from us. The customer can then choose: does he want to reduce his operating cost, get easier finance, or use a residual payment… it’s up to him. We now have a commercial finance representative available at our location to assist our customers with their financing needs. This means that you can get help with securing financing for your purchase right here on site!”

 

Parts sales have increased dramatically. “We have increased our parts sales in South Africa by having the correct parts available at the time of requirement. Naturally, parts sales have also been bolstered by the increase in new vehicle sales. Our customers tend not to use alternative parts. In the last three years, parts revenue has grown by 45%,” he says with great pride.

 

Yet another success story is the rollout of Executrax, DAF’s telematics solution. “It delivers seamless driver and vehicle management performance. It allows vehicle owners to track and report back on locations, driving behaviour, and vehicle and driver safety. It also monitors the productivity of a vehicle in order to make transport more cost-effective and sustainable. Executrax is now completely functional, and it is fully compatible with other trucks too – so a transport operator can run our truck and a rival truck and compare apples with apples,” explains Barnard.

 

Given all these initiatives, the DAF team anticipates great things from 2023. “We have sold 30% of our vehicles to new customers over the last year and the message we’re getting back from operators is clear: the market loves our trucks,” Barnard concludes.

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