DAF: destined for great things in South Africa

June 28, 2023

2023 is proving 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).

Barnard points out that local success comes off the back of an outstanding year for the brand globally in 2022. “DAF increased its European market share in the 16+ tonne segment to a record 17.3% (from 15.9% in 2021) 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,” he reveals.

Barnard attributes this 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 XD received the award in 2023. That was a very impressive achievement; secondly, there is the brand’s build quality and reputation; and thirdly, there is increased demand for DAF trucks in Europe, as they are the preferred choice for drivers due to the vehicles’ comfort and driveability.”

The manufacturer’s engineers have also played a crucial part. “DAF’s engineers took advantage of the new dimension allowance in Europe to improve aerodynamics with an additional 10% fuel saving,” notes Barnard. “Thus, the trucks are the most fuel efficient and offer the best total cost of ownership – traits 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,” he stresses. “In 2022, despite the challenging market conditions, we were able to meet the needs of our customers thanks to our strong partnership with DAF. Babcock’s dedicated team looks forward to continuing to provide our customers with exceptional products and service in the years to come.”

Barnard says demand for the DAF brand is at an all-time high in South Africa. “The customers tell us 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 adds.

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,” he points out. “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.”

Model launches will drive some of DAF’s sales in coming years. “While these models will initially feature internal combustion engines, we are committed to exploring more environmentally friendly options in the future,” says Barnard.

“We are looking forward to the XG being available in 6×4 guise by 2025,” he continues. “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.”

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

In the last two years, Babcock has opened its own standalone dealer facility 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 to the premises. We are also very close to securing a new head office and dealership in Johannesburg,” expands 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, such as being required to buy another truck from us. Customers can choose: do they want to reduce operating costs, get easier finance, or use a residual payment… it’s up to them,” Barnard elaborates. “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!”

Barnard highlights the fact that parts sales in South Africa have increased dramatically, thanks to Babcock ensuring it has 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. Executrax 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 to make transport more cost-effective and sustainable. It is now completely functional, and it is also fully compatible with other trucks – so a transport operator can run our truck and a rival truck and compare apples with apples,” explains Barnard.

Given all these initiatives, the Babcock team anticipates great things this year. “We have sold 30% of our vehicles to new customers over the last year,” he emphasises. “The message we’re getting back from operators is clear: the market loves DAF Trucks.”