NEWs
NEWs
www.automobil.co.za
August 2023
t the halfway point for calendar year
2023, a sales forecast of slightly more
than 30 000 new motorcycles is fea-
sible for the full year. “This will be a marginal
increase of 1.7% on comparative 2022, which is
disappointing given the strong growth that the
industry had experienced during the past few
years, albeit focussed on the commercial seg-
ments,” says Arnold Olivier, National Director
of the Association of Motorcycle Importers and
Distributors.
Segment performance reflects that the com-
mercial sector continues on an upward trajecto-
ry with 10% growth for the six months. Scooters
performed poorly with a disappointing 33% de-
crease in sales, for no apparent reason. The high-
er priced leisure segments show an overall in-
crease of 1.5%, but within this segment there are
fluctuations varying from -25% to +29%, making
it difficult to predict trends. Anecdotal evidence
suggests that some sales have been lost due to
consumers re-directing spend to solar installa-
tions. ATV and Side x Side sales are down 15%
compared to 2022.
Electric motorcycles and three wheelers
continue to form a statistically insignificant por-
tion of the market, but the 307% increase in reg-
istrations over the past six months suggests that
importers are finding some appetite amongst
commercial fleet owners to try electric models.
Used motorcycle sales statistics are only avail-
able up to April 2023 YTD, but have increased by
10.7% compared to the corresponding period of
2022.
“The industry view is that trading conditions
will continue to be tough, given the high inter-
est rates and likelihood of poor if any econom-
ic growth. Under the circumstances, very little
growth is expected for the rest of the year,” con-
cludes Olivier.
ew vehicle sales in South Africa continue
to impress despite the challenging eco-
nomic climate.
Figures released by the National Association
of Automobile Manufacturers of SA (Naamsa) for
June 2023 show that 46 810 units were sold – a
14% increase compared to the same month last
year.
Gary McCraw, director of the National Auto-
mobile Dealers’ Association, attributes this trend
to a consistent stream of new and updated ve-
hicle models as well as improved availability of
sought-after models. Aggressive sales assistance
strategies are also playing a role, he says.
A concern, however, is that dealer sales ac-
counted for a smaller share of the retail market in
June. This can be explained by sentiment towards
making larger purchases remaining slightly neg-
ative because of high interest rates. There have
been positives, certainly, but the automotive sec-
tor is by no means out of the woods.
At the same time, with South Africa’s automo-
tive field holding its own, the sector needs to en-
sure that all stakeholders are equipped with the
necessary skills to produce and distribute quality
vehicles.
This requires training that not only yields de-
sired results but is also cost-effective. Everyone
from management and executives to human re-
sources departments, training and development
teams, dealership owners, managers, industry
associations and trade organisations should play
an active role in the development and implemen-
tation of such training programmes.
“Prioritising cost-saving measures in training
is essential for automotive companies because it
allows them to allocate resources efficiently and
achieve several benefits,” says Michael Hanly,
managing director of South African online learn-
ing solutions provider New Leaf Technologies.
The obvious advantage is that well-trained
employees are better equipped to understand
customer needs and effectively communicate
the value of products or services, ultimately driv-
ing higher sales.
This, in turn, improves customer loyalty and
drives repeat business, not to mention the fact
that customers tell their friends about their good
experience.
“By optimising training budgets, automotive
companies can generate a strong return on in-
vestment through improved employee perfor-
mance, increased sales, and enhanced customer
satisfaction,” adds Hanly.
Technology in the form of e-learning pro-
grammes is playing a crucial role in reducing
training costs and allowing companies to reach a
wider audience.
Furthermore, these programmes can be set
up to focus on improving specific skills required
for sales and customer service.
“Virtual training and simulation tools can also
enhance practical skills in a cost-effective man-
ner. You can also establish performance metrics
and measure training effectiveness to identify
areas of improvement and adjust training strat-
egies accordingly,” says Hanly.
Hanly stresses that motor companies should
constantly gauge the effectiveness of training
programmes and identify areas for improvement.
This will also help to determine where costs can
be cut as they seek to optimise employees, sales,
and customer service.
“You need to establish clear objectives and
performance metrics before training implemen-
tation and also collect data on key performance
indicators such as revenue, customer service and
employee efficiency,” says Hanly.
“Importantly, in addition to conducting pre-
and post-training assessments to ascertain skills
improvement, you need to analyse the impact of
training on business results and compare it to the
costs invested,” concludes Hanly.
Motorcycle market continues to grow
How automotive companies
can save on training costs