SA’s aftermarket fuels economic growth

The importance of the commercial vehicle aftermarket in South Africa has been highlighted during a breakfast event hosted by Messe Frankfurt South Africa at the Kyalami Grand Prix Circuit’s Conference Centre. The event – part of a series leading up to the November 2024 editions of Automechanika Johannesburg and Futuroad Expo – gathered industry leaders to discuss the sector’s significance.

Craig Parker, research director at Frost & Sullivan Africa, emphasised the sector’s economic weight: in 2023, the road transport sector was valued at R182 billion, projected to grow to R187.8 billion by 2027 and R209.4 billion by 2029. This growth is reflected in the rise of total operating expenditure from R1.4 billion in 2006 to R8.4 billion in 2023, and capital expenditure from R2.05 billion in 2006 to R9.8 billion in 2023. Even after adjusting for fuel costs and inflation, these figures underscore the commercial vehicle (CV) aftermarket’s significance.

Parker also highlighted the growing importance of vehicle connectivity through telematics systems, noting South Africa’s leading position with 38.8% fleet connectivity. This places local telematics service providers in a strong position to expand globally.

Outlook for commercial vehicles

Menzi Nkonyane, senior research analyst at S&P Global Mobility, provided an optimistic outlook for the medium and heavy CV assembly sector. Dominated by the Traton Group (Scania and MAN), Daimler Truck (Mercedes-Benz and Mitsubishi Fuso) and Isuzu (Isuzu and UD Trucks), the sector is seeing increased competition from Asian brands. S&P Global Mobility forecasts that over 25,000 trucks and buses with a gross vehicle weight above six metric tonnes will be assembled in South Africa in 2024. This indicates stable growth for the sector through 2030.

Sustainability and future challenges

Duane Newman, partner at Ernst & Young (EY), discussed sustainability challenges faced by commercial vehicle manufacturers. He emphasised the need for decarbonisation, optimisation of production techniques, and adoption of fleet management technologies, noting that creating circular value chains is essential for enhancing productivity, profitability, and sustainability in the industry.

The Automechanika Johannesburg and Futuroad CEO breakfast event underscored the dynamic nature of the CV aftermarket and its critical role in economic growth. It highlighted the necessity for industry stakeholders to remain vigilant and proactive in adapting to changes and leveraging opportunities for better business outcomes.

Experts concur that, by focusing on connectivity, sustainability, and strategic growth, the CV aftermarket can continue to drive economic development in South Africa and beyond.

How to recognise and avoid counterfeit bearings

With an estimated 30% of bearings worldwide being counterfeit, truck and bus operators should be vigilant to ensure they purchase genuine – or at least high-quality – parts.

Shawn Reddy, product marketing manager for Motus Aftermarket Parts, points out that South Africa and the rest of Africa face significant challenges due to the prevalence of counterfeit automotive parts. As consumer independence on the continent increases, there is reduced guidance, inspection, and control of products entering the market. This influx of counterfeit parts compromises the safety of both vehicle owners and passengers.

Lynette Nieuwenhuizen, SKF regional sales manager for Western and Northern Cape, agrees, stressing the importance of buying bearings through authorised distributors. As a brand protection champion at SKF for the past two years, Nieuwenhuizen ensures distribution partners are monitored to remain compliant and free of counterfeit products. “We offer our customers free brand protection audits to check products in their warehouses and give them tips to look out for signs that should create alarm bells – as in a ‘too good to be true’ scenario,” she says.

Customers are encouraged to download the SKF Authenticate App to verify the authenticity of SKF products. “In this way, they safeguard themselves and have the peace of mind that their supplier is providing genuine products,” Nieuwenhuizen explains.

Counterfeit parts are often indistinguishable from the genuine product by appearance alone, leading many uninformed customers to purchase them unknowingly. Here are some warning signs to watch out for:

– The aftermarket product is presented as a bargain.

– Short delivery times for special products.

– Product authenticity certificates and other documentation where the seller claims affiliation with SKF.

“If you suspect a product to be counterfeit, always check its authenticity via the SKF Authenticate app if you are not buying from an accredited distributor,” says Nieuwenhuizen.

Vishall Premlall, national director of the Tyre, Equipment, Parts Association (TEPA), which is part of the Retail Motor Industry Organisation (RMI), urges truck and bus operators to report any cases of counterfeit products.

“Consumers need to be suspicious about what they buy and should never be afraid to approach the supplier directly to check authentication, or to report the product on the Whistleblower hotline,” Premlall emphasises. “If you have been scammed with parts purchases and suffered some consequence, it is key to report it. The more examples we have and the more we can share our knowledge and experiences with others, the harder we will make it for these unscrupulous suppliers to ply their trade.”