Business Fleet Africa January 2023

The January edition of Business Fleet Africa brings you all the latest news and developments from the world of commercial vehicles. This month we cover a variety of topics, including all the news from Bridgestone, Toyota, FAW, Serco and many more. Regular topics include business advice from Standard Bank, a road safety update from Ashref Ismail and a deep dive into the monthly sales figures.

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Suzuki unveilS

three new modelS

navigate 2023 with

careful control

of reSourceS

volvo

launcheS

electric

truckS in Sa

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Business Fleet Africa

EDITION 21

JaNuary 2023

22

26

Volvo launches electric

trucks in SA.

Table of ConTenTs

3 Editorial

Business

4 Navigate 2023 with careful control of

resources

14 Interventions needed to get SA economy

firing in 2023

Road Safety

6 Shocking, tragic but not surprising

News

8 Local News

16 Industry News

20 Technology

In the headlights: HCV Fleet Vehicles

22 Iveco wins 2023 Dakar Rally

23 South Africans shine at UD Trucks Gemba

challenge

24 Volvo launches electric trucks in SA

26 SVI launches B6 armoured Iveco Trakker

27 Gold medal for MAN in sustainability

ranking

28 Could e-Axles could become the staple of

electric powertrains

30 Mercedes-Benz Trucks sets up central

parts hub

Fleet Owner Success Story

31 Polar Limitada’s standardised DAF fleet

Supply Chain and Logistics

32 Last mile innovation

34 Why your business could do with a new

delivery partner

35 Shoring up a business’s legal position

Fleet Management

36 Ctrack continues to evolve into 2023

In the headlights: LCV Fleet Vehicles

38 The latest in automotive design

40 All-new Amarok to go on sale soon

42 Suzuki unveils new models

43 Mercedes-Benz EQE goes on sale

44 Haval launches sporty Jolion S

Industry Sales

45 Bumper December for commercial

vehicle sales

46 Buyers Guide

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Suzuki unveilS

three new modelS

navigate 2023 with

careful control

of reSourceS

volvo

launcheS

electric

truckS in Sa

Proudly supported by

40

14

January 2023 | BUSINESS FLEET AFRICA

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Editor

Reuben van Niekerk

reubenvn@vodamail.co.za

082 837 8801

Editor-at-large

Suzanne Walker

suzanne.walker3@gmail.com

083 3789 664

Contributors

Roger Houghton

houghtonr@mwebbiz.co.za

082 371 9097

Publisher

Jacques Wilken

jwilken@mweb.co.za

083 299 7312

Road Impression Editor

Charl Wilken

cwwilken@mweb.co.za

083 297 1837

Advertising and Marketing

Charlene Kruger

charlene@businessfleetafrica.co.za

076 807 4613

© 1997 WCM Media CC

Disclaimer

While all reasonable precautions

have been taken to ensure the

accuracy of information supplied,

neither the editor, the proprietors,

nor the publishers can accept

responsibility for any inaccuracies,

damages, or injury which may arise

there from.

Work smartly in 2023

Another year is upon us and while the chaos created by the global pandemic seems

to mostly be a thing of the past there are numerous new challenges that make doing

businesses in South Africa tricky. A common thread in this month’s edition of Business

Fleet Africa, is that business will have to work smarter and carefully control all the

resources that contribute to their business model in order to have any chance of

survival in this challenging market.

This will include carefully considering long term agreements and in many cases

opting for agreements that give you more flexibility as your business needs ebb and

flow. The right partnerships are also critical and what business owners are looking

for in partnerships is also very different to what was considered vital a few years ago.

Factors such as ESG and corporate responsibility are becoming more important as

people now investigate the entire supply chain of a business, from source to the way

the final product is packaged and delivered so that they know exactly who they are

doing business with. How all the players in the value chain conduct their affairs will be

considered before entering into any partnerships. Being associated with the wrong

crowd is seen as a big no, no these days.

Road deaths still too high

Transport Minister Fikile Mbalula announced that during the festive period from

1 December 2022 to 11 January 2023, 1451 people died on South African roads. The

Minister noted that this is a 14% reduction in the number of fatalities compared to the

same period in 2021/2022.

While an improvement is certainly welcomed, losing 1451 lives in five weeks is still

completely unacceptable and drastic measures need to be taken to curb the culture

where such a number is celebrated.

Our new columnist Ashref Ismail offers several suggestions a few pages on but

there certainly must be a greater emphasis around the education regarding road

safety. Government also needs to come to the party and sign in to law the proposal

for periodic testing of older vehicles, which has been lying in wait for many years now.

Reducing the number of unroadworthy vehicles on our roads will go a long way in

reducing accidents.

We would like to hear from you

Business Fleet Africa continues to strive to offer our readers a unique combination

of content from all the segments of the world of working wheels and the associated

industries. As such we always welcome suggestions regarding what you would like to

read about, what you would like to see more of and maybe even what you would like

to see less of.

Reuben van Niekerk

Editor

Editorial

eDIToRIal

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As we embark on 2023 there are numer-

ous external factors that continue to

influence the business world, globalisa-

tion and technology.

According to the latest reports the

South African GDP increased by 1.6% in

quarter three following the 0.7% decline

in quarter two of 2022. The result is

that the SA economy grew to above

pre-pandemic levels, with real GDP now

the highest it has ever been. The main

drivers of growth were agriculture,

finance, transport and manufacturing.

At the end of November, the

monetary policy committee raised the

benchmark repo interest rate to 7%, with

the prime lending rate now at 10.5%. It is

predicted that we will see increases in the

repo rate going forward, but these will

most probably be at a much slower rate.

In November 2022 the Reserve

Bank highlighted the upside risks to

SA inflation, which is still focused on a

wide range of factors including oil, food

administered prices, the rand exchange

rate and salaries. The food price inflation

forecast has been revised to 6.2% and

their estimated headline inflation for

2023 is forecasted at 5.4% and is expect-

ed to average 4.5% for 2024 and 2025.

The importance of social responsibility

Social responsibility is a way for corpo-

rations and small businesses to support

good business. It is not just philanthropy,

it is also a way to address the world’s

most pressing problems, from climate

change to hunger and disease. It can

be an important differentiator in the

marketplace as well, helping companies

build relationships with their customers

or employees. Companies that take an

active role in their community and create

initiatives that help improve the lives of

people are likely to be more profitable.

Technology, the good and the bad

Technology has changed every aspect of

our lives, including business. Globalisation

means that it’s easier to share ideas and

conduct business across borders.

Navigate 2023 with

careful control of resources

bUsIness

However, as the world becomes

more reliant on technology, cybercrime

has become a significant threat to

business. The number of reported

incidents of cybercrimes has increased

dramatically over the last decade and is

expected to keep growing as technol-

ogy used by these criminals becomes

more sophisticated and harder to

detect.

Tighter control imperative

“These ongoing challenges mean

that doing business in South Africa

is as tough as ever and in order to

survive and remain profitable business

owners and fleet managers need

to closely manage every aspect of

their business to ensure efficiency

in all areas,” says Derick de Vries,

Executive Head of Standard Bank Fleet

Management.

Key to this is the right business

partnerships and supplier relationships.

For example, a well sorted and carefully

managed fleet management system is

critical to doing business in the transport

industry.

“So too are the right financing

partners. A volatile market means that

transport operators are experiencing a

growing need for more flexible financing

arrangements that allow them to alter

their fleet as and when needs arise,”

adds de Vries.

Standard Bank Vehicle and Asset

Finance currently offer several solutions

that speak to this need. Interim agree-

ments are an interim solution until such

time that they are superseded by a main

agreement. Operating rentals allow

assets to be hired for a defined period.

Full maintenance rentals provide

a comprehensive finance and main-

tenance package for businesses and

private individuals that require the use

of a vehicle or number of vehicles for

various purposes but do not want to

take ownership of, or the risk of main-

taining or disposing of the vehicles.

A fleet management card offers

convenience and is a useful way of

paying for, monitoring and controlling

vehicle running costs. Transactional in-

formation is provided on a daily, weekly

or monthly basis. Online authorisation

at the time of the transaction and

reporting of approved and declined

transactions ensures pro-active control

of expenses. This offers increased

security that protects against any pos-

sible fraudulent transactions and helps

manage the running costs of vehicles

by comparing performance against

benchmark statistics.

“Being adaptable is key to surviving

in an ever-changing world and the flex-

ibility of partnerships and agreements

will become a critical deciding factor

for business owners going forward,”

concludes de Vries. BFA

‘These ongoing

challenges mean

that doing business

in South Africa is as

tough as ever and in

order to survive and

remain profitable

business owners and

fleet managers need to

closely manage every

aspect of their business

to ensure efficiency

in all areas.’

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The Boksburg Tanker Explosion that

claimed the lives of forty people

on Christmas eve is symptomatic

of a country that is at the edge of a

precipice.

With more than a thousand

people killed on South African roads

during the past month-long holiday

season, we remain numb to the news

of road related deaths. We have be-

come so insensitive to the needless

and senseless loss of lives that we

have normalised dying on our roads

as an unfortunate expectation.

Daily, an average of forty people

die on South African roads with up

to 35% comprising of pedestrians.

This puts us amongst the top ten

worst countries in Africa and in the

top 25 worst in the rest of the world

when comparing road deaths.

The road transport system

which is the lifeblood of any vibrant

economy, is the heartbeat of a

flourishing and prosperous society.

Safety, security, efficacy and

efficiency separates first world from

third world environments.

More than ever before we are

beginning to see the scourge of

bad driving increasing amongst the

heavy vehicle sector. Following the

Shocking, tragic

but not surprising

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RoaD safeTY

More than ever before we are

beginning to see the scourge of

bad driving increasing amongst

the heavy vehicle sector.

Following the Boksburg tanker

explosion, there have been four

other tanker-related crashes in the

country. And this will continue,

as unscrupulous operators, hire

drivers with dodgy credentials,

providing no advanced, defensive

driver training, overloading

their vehicles, cutting on key

maintenance and asking their

drivers to drive longer hours

without reasonable breaks.

January 2023 | BUSINESS FLEET AFRICA

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Boksburg tanker explosion, there have

been four other tanker-related crashes

in the country. And this will continue,

as unscrupulous operators, hire drivers

with dodgy credentials, providing no

advanced, defensive driver training,

overloading their vehicles, cutting on key

maintenance and asking their drivers to

drive longer hours without reasonable

breaks. This is a recipe for disaster, and

we regularly witness the frightening

results on social media.

The failure of Prasa, the SOE that

manages Transnet and Metrorail has

resulted in an ever-increasing volume

of heavy vehicles on the major arterial

corridors. The destruction of the rail in-

frastructure and the plundering of what

used to be efficient railway stations is

enough to reduce one to tears.

A variety of factors has resulted in a

traffic law enforcement fraternity that

is conspicuous by its absence. When

traffic police are visible, it is most often

when they are conducting speed-timing

operations. If you should be pulled

over for a roadside check, at most, it

will be checking the validity of your

driving license and the vehicle license

disc. There is absolutely no evidence of

smart policing.

This in a country where there are

high levels of alcohol-related deaths.

In fact, according to Medical Research

Council’s Non-Natural Injury Mortality

Rate, 65% of weekend death rates are as

a result of abuse of alcohol, either by a

driver, and/or pedestrians.

Daily we witness motorists of all

vehicle classes committing all manner of

road infractions with impunity, talking

and even texting on their mobiles

while driving, operating un-roadworthy

vehicles, jumping red lights, overtaking

dangerously, tailgating and various

other moving violations simply because

there are no consequences. Crumbling

infrastructure, secondary roads dotted

with killer potholes and the general

state of decay further contributes to

motorist’s frustrations, leading to road

rage and unsafe driving. It seems that we

are all just one mile away from total road

anarchy.

This situation not only relates to road

transport, but has unfortunately also

spilled over to rail, aviation and mari-

time. The lack of competition following

the downing of major brands like Mango,

Kulula, Comair and SAA have led to the

high cost of air travel, both domestically

and internationally forcing more people

to travel by road.

So, how did we get here?

Having worked for two decades at

provincial and national departments

of transport and being a former,

founding member of the Road Traffic

Management Corporation, I can say

without a doubt that the following are

some of the key challenges:

Q Lack of continuity with new Minister

appointees bringing their own admin-

istrative agenda sometimes to the

detriment of successful programs.

Q The Road Traffic Management

Corporation (RTMC) needs to be the

lead agency for road safety in the

country, with a better communica-

tions strategy.

Q The strategic objectives and key

performance indicators of the RTMC

should be aligned to measuring and

reducing road deaths.

Q The National Traffic Police of the

RTMC has created an additional

tier of traffic law enforcement and

it is not uncommon to find three

different agencies working along one

major route. There should be more

cohesion in traffic management

structures with proper goal setting

and strategies for each.

Q A proper accredited and certified

driving school and driving instructor

training programme should be

developed, which ideally should be

preceded by overhauling the entire

K53 regime.

Q Road safety education in conjunction

with the National Department of

Education has not been realised and

a wonderful opportunity to inculcate

safety habits from a young age is

missing.

Q Road traffic offences are still seen as

a minor or petty offence and various

agents across the criminal justice

system are not giving it the necessary

gravitas to serve as an effective

deterrent.

Q For too many of the local traffic

authorities road traffic offences are

a means of revenue generation and

until this mindset changes, we will

continue to lose lives.

Q The entire road traffic strategy needs

to be overhauled and an effective

tri-partite coalition established

between government, the private

sector and civil society.

While the wish-list is far from complete,

tackling some of these issues listed

above would be a step in the right direc-

tion. With a cabinet reshuffle looming,

let’s hope that the new incumbent will

provide the vision, aims and objectives

that the long-suffering populace

country is long asking for and is truly

deserving of. BFA

Ashref Ismail is a multiple

award-winning road safety

practitioner with more 35 years’

experience at provincial, nation-

al 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

consultancy, specializing in

advanced, hazard management

training and driver wellness.

The failure of Prasa, the SOE that manages Transnet

and Metrorail has resulted in an ever-increasing

volume of heavy vehicles on the major arterial

corridors. The destruction of the rail infrastructure

and the plundering of what used to be efficient

railway stations is enough to reduce one to tears.

BUSINESS FLEET AFRICA | January 2023

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neWs

Bridgestone Southern Africa Mining services and OTRACO

Southern Africa will join forces to accelerate mining tyre

management and mobility solutions in Southern Africa, under

one banner.

Bridgestone Southern Africa (BSAF) recently announced

that its group company Bridgestone Southern Africa

Holdings (BSAFH) has entered into an agreement to acquire

OTRACO Southern Africa, a leader in Off-The-Road (OTR)

tyre management solutions. This acquisition will accelerate

the growth of Bridgestone SA’s mining solutions business

and expand the company’s service network. The acquisition

was completed in December 2022 and André Bode will

continue as Managing Director of OTRACO, reporting to

Jacques Fourie (Vice President of Bridgestone Middle East &

Africa).

As part of Bridgestone’s initiative to improve mobility

solutions and tyre-centric services across all market segments,

the company identified a need in the mining market for

specific mining services and enhancements. “The acquisition of

OTRACO, with their strength in tyre management systems, is an

exciting milestone in our history and presents a new oppor-

tunity to extend our mobility solution offerings to the market.

Together Bridgestone and OTRACO have market leading mining

tyre management and mobility solutions,” says Jacques Fourie,

CEO of Bridgestone Southern Africa.

Going forward, Bridgestone SA will go to market under the

OTRACO banner. “Bridgestone and OTRACO are proud to join

forces, under the OTRACO banner, to offer industry leading

mobility solutions and mining tyre management services to

our valued customers,” says Carl Martins Bridgestone’s Mining

Services Executive Manager. BFA

Bridgestone Southern Africa to

acquire OTRACO Southern Africa

Local automotive intelligence has found

that criminals are now using sophisti-

cated technology to target high-end

and luxury vehicles featuring keyless or

smart entry systems and emergency

start capabilities.

This phenomenon affects automotive

brands across the board, Toyota South

Africa Motors (TSAM) confirms that

it has been proactively conducting

extensive research and development to

enhance its vehicle security systems.

Senior Vice President of Sales and

Marketing at TSAM, Leon Theron

says: “At Toyota, we are committed

to continue with our research and

development to further enhance

our vehicle security systems. I would

also like to add that vehicle owners

will not negate the warranty on their

vehicles should they elect to fit an

aftermarket security device, if these

are installed correctly by a reputable

fitment centre”. BFA

Toyota announces

enhancements to vehicle security

The election of Fikile Mbalula as the

Secretary General of the ANC will require

a replacement as Transport Minister in

the Cabinet of President Cyril Ramaphosa,

and the Automobile Association (AA)

urges the President to make a strong

appointment to this position.

“A new appointment in the important

Transport portfolio is inevitable as

Mbalula takes on his new role within the

ruling party. We urge Ramaphosa and

his advisors to appoint a strong leader

in this position capable of prioritising

the needs of citizens who desperately

require safe, affordable, efficient, and

reliable transport solutions and infra-

structure,” notes the AA.

The AA says while there are many

areas that require attention within this

portfolio, the following key issues must

be dealt with urgently by Mbalula’s

replacement:

Urgent prioritising of road safety

in South Africa, which will require

immediate implementation of the Traffic

Law Enforcement Review Committee

recommendations of 2019 which,

amongst others, call for the doubling

of the current number of traffic law

enforcers on the country’s roads.

Along with their counterpart at the

Department of Trade and Industry more

focus on the immediate implementation

of safer vehicle standards, including the

mandating of displaying safety ratings of

vehicles at point of sale, is required.

Along with their counterpart at the

Department of Justice, road offences

need to be prioritised. Currently road

users flout the rules of the road because

of a lack of consequences. For instance,

only eight % of drivers arrested for drunk

driving are prosecuted.

Comprehensive, practical, and

standardised road safety education

needs to be implemented at all schools

and throughout all grades.

Better co-ordination with the

provincial Departments of Transport and

Public Works is necessary to ensure road

infrastructure is maintained, repaired

where necessary, and created where

the need exists. The country’s crumbling

road infrastructure, especially at regional

and provincial level, is cause for great

concern and will only get worse without

immediate intervention.

A stronger focus on resolving public

transport issues is required to make pub-

lic transport more reliable, affordable,

and safer. This includes resolving issues

within the Public Rail Agency (PRASA)

with a view to ensuring this service is

safer and more reliable for more South

Africans and a re-evaluation of the

Patronage Guarantee paid to the private

company Bombela, which operates the

Gautrain. This service receives billions of

Rands in compensation from the govern-

ment annually for low ridership levels,

money which, in the AA’s view, should

be invested in other public transport

initiatives that serve more people.

“There are many other issues which

require attention, and the new Minister

of Transport will have a full plate to deal

with from day one in the position. For

this reason, it is vital that the President

and his advisors appoint someone who is

not only up to the task of managing such

a vast department, but also someone

who has the political will to affect mean-

ingful change,” concludes the AA. BFA

Hyundai Automotive South Africa is now running its head office in Bedfordview and

several of its Gauteng dealerships on solar power when loadshedding occurs.

At the head office, more than 240 solar panels have been fitted on the roof of the

building, delivering 110 kW on a typical spring sunshine day, says Johan Nel, Regional

General Manager at Hyundai Automotive SA.

Nel says the vision is to expand to more dealerships in Hyundai’s network after

studying the present installations and their performance, which would indicate

which system delivers better results and savings: one using solar panels and batter-

ies for power storage, or the other using solar panels with an inverter only. BFA

Hyundai goes green at HQ

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Strong leadership needed at

department of transport

neWs

BUSINESS FLEET AFRICA | January 2023

10

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British electric vehicle manufacturer

Tevva has hit another major milestone

after securing European Community

Whole Vehicle Type Approval (ECWVTA)

for its 7.5 ton battery-electric truck. It

means that Tevva can start producing

and selling in volume across the UK and

Europe and represents the key regulato-

ry step in the development and com-

mercialisation of all vehicles, including

electric trucks.

With this Tevva becomes the first

British company to receive EC Whole

Vehicle Type Approval for a 7.5t electric

truck and has moved quickly to get its

first vehicles out to customers. The

first mass produced electric trucks

have commenced delivery from their

UK base and will be eagerly received

by customers including Expect

Distribution, Travis Perkins and Royal

Mail. The company expects to sell up

to 1 000 electric trucks in 2023.

Tevva’s 7.5t electric truck offers

a range of up to 227 kilometres from its

105kWh battery on a single charge and

is ideal for last-mile and urban delivery

fleets. It will be followed later in 2023

by a 7.5t hydrogen-electric truck, which

benefits from a hydrogen range-extend-

er that enhances vehicle range to up

to 570km. BFA

In 2023 FAW plan to introduce several new models in all seg-

ments, further expanding the already comprehensive product

offering and ensuring that they can continue to meet the needs

of the South African customers, with a wide variety of solutions

and the latest technology, across all segments of the commer-

cial vehicle industry.

One of FAW Trucks’ biggest goals for 2023 is to surpass

15 000 units of production. The manufacturing facility recently

invested in several new employees in order to meet their recent

production milestones and will integrate this additional manpow-

er while also incorporating modifications to the existing factory

processes and technology in order to meet these targets.

“The fact that there are plans in place to reach our 15 000th

unit of production in such a short space of time, is purely based

on demand for the product by local customers who value our

built in Africa, for Africa strategy, says Yongjun Li, CEO of FAW

Trucks South Africa.

FAW Trucks will also be expanding its dealer network to

ensure that they have widespread representation throughout

South Africa to meet this growing demand. This will include the

opening of new dealers in a number of new as well as existing

locations. These dealers will include both fully fledged sales

and service dealers as well as dealers focused solely on service

as the brand endeavours to improve its parts and aftersales

distribution and servicing ability, especially in close to proximity

to large fleet owners or operations.

FAW Trucks look forward to celebrating its 30th year in South

Africa in 2023. Over three decades they have grown in popu-

larity and market share by offering customers products that

represent excellent value for money in the extra-heavy, heavy,

medium and light commercial vehicle segments and they will

continue to do so. BFA

Tevva receives

vehicle type approval

FAW Trucks looks forward

to an exciting 2023

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