MAN targets lower TCO with TopUsed loyalty programme
MAN targets lower TCO with TopUsed loyalty programme
As competition intensifies across South Africaโs freight sector, MAN Truck & Bus South Africa has introduced a unique new loyalty programme aimed at reducing total cost of ownership (TCO) for usedโtruck operators. Deon Otto, head of MAN TopUsed, tells CHARLEEN CLARKE that longโterm value, uptime and dependable customer support are becoming increasingly decisive in the used vehicle market.
Otto says transport operators are under mounting financial pressure, prompting a renewed shift towards highโquality used trucks. Reliability, predictable running costs and operational uptime, he notes, are now outweighing headline purchase prices when fleets make procurement decisions.
โAccordingly, we have adopted a strategy to support customers throughout the full lifecycle of their vehicles. We are constantly driving to improve MANโs usedโvehicle offering at a time when operators are scrutinising every rand spent,โ he reveals.
His perspective is shaped by nearly four decades with the company. โI started my journey with MAN Truck & Bus back in May 1989. Somehow, 37 years later, Iโm still here,โ he says. His career has spanned wholesale, retail, parts, product development, dealer development, aftermarket support, key account management and new vehicle sales.
Since June 2024, he has headed MAN TopUsed, the companyโs usedโvehicle division. โItโs been an exciting new chapter โ bringing together so many things Iโve learnt over the years and putting them to good use in a different part of the business,โ he says.
Focus on used vehicle support
Otto notes that the used vehicle market has become increasingly important in South Africaโs transport sector, particularly as operators seek to expand their fleets. โSuccess in South Africaโs heavy-duty transport sector requires a strong and comprehensive used vehicle trading capability. We strive to ensure that we can offer good vehicle availability,โ he explains. โMAN has been actively involved in the used vehicle market for many decades, building a trusted reputation and deep expertise in this space.โ
The company recently introduced an enhanced loyalty programme aimed at all used MAN vehicles sold through MAN TopUsed South Africa and the dealer network. The programme includes preferential labour rates, discounts on parts and access to refurbished components. โThese vehicles automatically qualify for the programme regardless of age or kilometres,โ Otto emphasises.
Vehicle registration is completed at the point of sale using the Vehicle Identification Number (VIN), ensuring immediate activation.
According to Otto, the programme is intended to help customers manage TCO over the second and third economic life of their trucks. โThrough our Senior Truck Card concept for MAN vehicles older than five years, we have long supported our customers with preferential parts and labour pricing,โ he elaborates. โThis initiative is designed to ensure that the total cost of ownership remains highly competitive throughout the second and third economic life of the vehicle.โ
A South Africa-first initiative
The loyalty programme was introduced internally during MANโs Customer Service Management Conference in April 2026 before being rolled out publicly in May. โWe conducted an internal launch of the concept to our dealer network,โ Otto says. โFollowing this successful introduction, we systematically rolled out the offering to the public.โ Interestingly, the programme is unique to this country. โSouth Africa only,โ Otto affirms when asked whether similar initiatives exist elsewhere.
He believes the programme addresses a growing challenge in the local market, as cheaper new truck brands continue entering the country. โWe have seen a wave of low-cost brands entering the market, offering new vehicles at price points comparable to those of traditional premium used vehicles,โ he says. โOn the surface, this appears to give customers greater choice โ which is, of course, a positive thing.โ
However, Otto argues that long-term operational realities often paint a different picture. โCustomers may only discover issues related to product integrity, durability, component longevity, or technological design once they begin experiencing unexpected downtime and operational disruptions, by which point it is already too late,โ he explains.
Competing beyond the purchase price
The growing presence of Chinese truck brands in South Africa has significantly changed the competitive landscape, particularly in the heavy commercial sector. Otto acknowledges the pressure this creates but believes MANโs strategy centres on educating customers about long-term value, rather than competing purely on upfront pricing.
โWe see continued strong demand in the extra-heavy long-haul and heavy-duty traction sector for premium-quality used brands, typically of European origin,โ he says. โProduct DNA, long-term product lifecycle philosophy, dealer network sustainability and multiple product lifecycle deployment are incomparable between European and Asian sources.โ
He adds that operators are increasingly being forced to examine their businesses more closely: โIt is our obligation to keep informing customers about what makes us inherently different, and why they should look much further than just an upfront ticket price.โ
At the same time, Otto says MAN understands the severe cost pressures transport operators currently face. โWe also realise the cost pressure operators are under; programmes like this are designed to provide cost-effective solutions for customers without compromising on operating quality vehicles,โ he expands.
The importance of uptime
Throughout the interview, Otto repeatedly returns to two concepts โ uptime and TCO. โIndeed, the heavy commercial vehicle industry has become over-traded and super competitive, also impacting OEM profitability,โ he says. โAt MAN, we live out our Customer First company value, where long-term, sustainable partnerships with our customers are critical.โ
By listening carefully to operators, Otto says MAN has identified the key areas where value can be created. โWe fully understand the TCO levers which add value to customers,โ he explains. โThis loyalty programme clearly helps our customers deploy quality used vehicles into certain operations with the peace of mind of a premium brand supplier โ and then with tangible TCO components.โ
MAN TopUsed is a global used vehicle trading solution fully managed by the OEM. โBecause we have true skin in the game across the entire value chain, we understand the full 10-year product lifecycle better than most,โ says Otto.
The offering includes financing solutions through MAN Financial Services, residual value support, refinancing options, repair and maintenance plans and international vehicle return policies. โOur holistic approach goes far beyond simply selling used vehicles,โ he stresses. โTogether, these elements create a comprehensive long-term TCO solution carefully engineered to meet the needs of different customer segments and transport applications.โ
Demand for used trucks returning
Otto believes the South African market is once again shifting towards approved used vehicles after several years in which some operators opted for cheaper new alternatives. โFor many years, blue-chip professional hauliers have relied on used vehicles to meet peak-period demand,โ he says. โHowever, in an increasingly competitive new-vehicle market, a number of customers who would traditionally have opted for a used vehicle solution instead chose to invest in new vehicles.โ
That trend now appears to be stabilising. โThe reality is that not every transport application or contract can justify the economics of a new vehicle,โ Otto explains. โAs a result, demand for used vehicles is clearly returning.โ
He says MAN is well positioned to benefit from this renewed interest. โAs a premium trucking brand, MAN products are highly sought after in the used vehicle market, reflecting their quality, durability and strong residual value.โ
Dealer networks remain critical
Another major differentiator, according to Otto, is dealer support and parts availability. โAssuring top quality service and parts supply throughout our extensive dealer network in South Africa and neighbouring countries is critical,โ he says.
The network provides 24-hour support and repair services while giving customers access to different parts solutions depending on operational requirements and budgets. โIn short โ TCO and uptime,โ Otto says. He believes this support structure becomes even more important during difficult economic conditions when operators cannot afford unnecessary downtime.
Long-term support, he argues, is one of the defining characteristics separating established truck manufacturers from newer entrants: โThis commitment is what differentiates premium brands from low-cost alternatives. MAN not only protects and enhances the resale value of its vehicles, but also reinforces customer confidence in the brand,โ he notes.
Building long-term relationships
For Otto, the success of the used vehicle business ultimately depends on relationships built over many years. โLong-standing MAN customers understand the value of partnering with a brand that remains committed through multiple economic lifecycles,โ he says.
That philosophy extends well beyond solely the trucks. โWe wish to thank our loyal MAN customers for ensuring that we continue to have a healthy used vehicle trading business in Southern Africa,โ Otto says. โWithout supportive and invested customers, no product innovation or business solution brings success.โ
He also pays tribute to the wider MAN organisation. โWe have to say a huge thank you to the MAN team โ engineers, production staff, financiers, marketers, service network, suppliers and business partners,โ he says. โIt takes time and a great deal of effort to develop systems and processes that enable commercial vehicle success.โ
After nearly four decades with the company, Otto is convinced the transport industry remains fundamentally about partnerships and trust. โWith this team of professionals, our customers are in good hands. Their investment is safe with us,โ he emphasises.
Published by
Focus on Transport
focusmagsa
