Keeping it light: 2024’s LCV trends

South Africa is a haven for LCVs, from rough and tough bakkies for dealing with rugged rural terrain to panel vans for efficient urban deliveries, and vehicles for specific applications like refrigerated transport. We take a look at some of the factors and trends currently influencing LCV market trajectories.

Global data and business intelligence platform Statista projects that LCV unit sales will reach 141,100 this year. “Furthermore, it is expected that the market will continue to grow with an annual growth rate of 0.55% from 2024 to 2029, resulting in a projected market volume of 145,000 by the end of 2029. This demonstrates the potential for further expansion in the market,” it notes.

Statista emphasises the growth of South Africa’s LCV market in recent years and its “significant growth potential”, highlighting a number of trends in the local market. 

A shift to electric models

In line with global patterns, the local LCV market is moving increasingly towards electric models, driven by government incentives and growing environmental awareness. “Customer preferences have shifted towards more fuel-efficient and environmentally friendly vehicles, leading to an increase in the demand for electric and hybrid LCVs,” Statista emphasises. It adds that with customers actively seeking vehicles with a lower carbon footprint, “manufacturers are investing in the development and production of electric and hybrid models to cater to this growing demand”.

Customisation and personalisation

“Customers are increasingly looking for vehicles that can be tailored to their specific needs and requirements. This includes features such as additional storage space, specialised equipment, and enhanced safety features,” states Statista. Manufacturers are responding accordingly, offering a wide range of customisation options to match a variety of unique requirements.

Demand for used vehicles and rentals

Leading international consulting, data analytics, and market research firm MarkNtel Advisors highlights the growing demand for used vehicles in South Africa, as well as the emerging trend of rental vehicles.

For example, French refrigeration specialist Petit Forestier, which launched in South Africa in 2018, provides refrigerated vehicle rentals including bakkies with up to 560kg payloads. Rentals provide various benefits, including a reduction in risk and capital outlay for small operators trying to establish themselves in the sector. Rental options also offer flexibility in fleet size and vehicle configuration for operators who may have to deal with fluctuating supply volumes.

Economic growth and increasing transport and logistics services

While South Africa certainly faces a number of economic challenges, Statista says that steady economic growth has led to more consumer purchasing power: “This has resulted in higher demand for light commercial vehicles as businesses and individuals seek to expand their operations and improve their transportation capabilities.”

Alongside South Africa’s growing population, Statista points to a resulting strong and growing demand for transportation and logistics services and the expansion of e-commerce and online shopping, saying: “(This) has led to an increased need for light commercial vehicles to support the delivery of goods and services.”

Furthermore, our well-developed automotive industry supports a competitive market; manufacturers  are constantly innovating and improving their products to gain a larger market share. With local manufacturing also a strength, Statista notes that the wide range of options available further supports market growth. 

All things considered, the future currently looks bright for the LCV sector. This is true for both new and used vehicles, while rental options provide alternative, flexible options for many operators.