Construction Sector Builds up Irish HGV Sales
There is no sign of a fall-off either as there are over 350 more 3 axle and 4 axle trucks on our roads today transporting raw materials for the construction industry, compared to this time last year. And when you consider that some transport operators have moved from these multi-axle vehicles to articulated tractor-units particularly long-haul work, the continuing vibrancy in the market place is much better than imagined. The future looks bright too, thanks to the recent Government Transport 21 announcement.
Local Authorities and more recently Fuel Distributors are investing in vehicle renewal also, if one looks at the high numbers of new 6x4 vehicles registered this year. Westward Scania has been active in this area more than most as its 39% market share indicates. The other two main players in this 3 axle truck (fitted primarily with tipper bodies) is Volvo and Hino who together with Scania make up 82% of new sales in this 26 tonne sector. It’s the same three manufacturers that have the lions share in the heavier 4 axle category. Hino tops the order list here with a dominant 40% market share. In the overall picture, the Japan brand’s presence in Ireland equates to almost 11%, a phenomenal achievement, not witnessed in any other market throughout Europe. Volvo, Scania and DAF are the only manufacturers to make an impression on this 32 tonne specification.
Competition in this specialised class is about to get a little more heated with the arrival of two strong German marques Mercedes and MAN, with light chassis versions of their Axor and TGA models. Speaking to Fergus Conheady, Sales Manager at Mercedes Commercial Vehicle Division, he is confident that the modifications made to the recently revised Axor 8 wheeler with its lightweight chassis will make an impact straight away. His counterpart at MAN Importers Ireland, Michael Hynes, is gaining lost ground now that the MAN TGA range extends to cater for both asphalt and muck-away operations.
Society of the Irish Motor Industry (SIMI) registration figures for Tractor Units indicate that over €127.2m has been spent so far this year by transport operations in new rigs and that’s just for the truck part, as a large number of new additions to fleets also require the acquisition of a new trailer. Scania’s hold on Tractor unit sales remains strong, thanks to the acceptance of the New R-Series (International Truck of the Year 2005) by the haulage fraternity. Its market share has increased by 5% in the last 12 months since the new range was introduced. Swedish rival Volvo has slipped back a bit as has DAF and Mercedes. TDI (Truck Dealers International) is making its contribution to Iveco’s 30 year birthday celebrations budget by increasing the number of new registrations of its Stralis model two-fold. The people at MAN Importers Ireland on Dublin’s Nangor Road are happier too that the MAN TGA is in more demand. Hino, a brand once strong in this sector makes a welcome return with the launch of the tractor unit version of the new 700 Series.
It will be interesting to note what will happen between now and this time next year with the advent of EU Euro 4 engine emission controls. Word on the street is that manufacturers are gearing up to have a generous supply of the outgoing Euro 3 available before the October 2006 deadline. Unless the EU introduces some form of incentives like reduced toll charges (as per Germany), the higher cost in purchasing Euro 4 or Euro 5 will not be met in huge numbers by the transport companies.
Mentioning trailers earlier, business is brisk in this auxiliary end of transport. Irish trailer manufacturers, like Dennisons, Caseys and OKM, have reacted to changing trends, for example by designing and building tipper trailers to best suit our ever changing road conditions, while specialist builders Fruehauf (UK) and German companies Fliegl and Schmitz offer a wide choice of applications to the construction industry haulier.
For goods transport, box body producers such as SDC, United Trailers, Montracon all based in the North are battling against big European brands. According to a survey undertaken by Michelin and Fleet Management Magazine featured in the October edition, 19% of trailers purchased by Irish customers are obtained abroad, with higher specifications available from overseas manufacturers the main attraction. Again German firms are highly regarded. Schmitz Cargobull is Europe’s No. 1 trailer maker while Kogel and Krone specialise in this area which includes refrigerated units. Krone, which is well known in Irish agricultural circles has just appointed National Truck & Trailer Sales Ltd as its new trailer agent for the 32 counties.
Rounding off our periodical look at commercial vehicle sales, one sector has suffered a serious downturn. Competition from low air-fares has affected bus and coach sales not only in Ireland but also across Europe. New passenger transport vehicle registrations decreased by almost 30% in the market up to the end of September compared to Quarter 3 last year. Proposed Government capital investment in public transport should inject some resurgence in to a sector that has dropped by 100 units year to date.
20/12/2005
Legal Brief