UD Trucks Southern Africa drives innovation into 2025
UD Trucks Southern Africa drives innovation into 2025
The South African trucking industry faces mounting challenges, but advancements in technology and growing environmental awareness are reshaping the sector. UD Trucks Southern Africa (UDTSA) is driving innovation and helping operators to adapt and thrive in this demanding and evolving landscape. COLIN WINDELL reports.
UDTSA has kicked off 2025 with dual celebrations – marking 90 years of global innovation since the brand’s founding in 1935 and commemorating over 60 years of operation in South Africa.
In 2024, UDTSA achieved notable growth in the South African market, with aggregate industry sales rising to 32,912 units, compared to 30,807 units the previous year – an impressive market growth of 10.2%. The company also maintained its leadership in Euro 5 vehicle sales and achieved over 50% penetration in service agreements.
Speaking at the company’s annual press conference, Filip Van den Heede, managing director of UDTSA, noted: “Despite facing unpredictable domestic and international challenges, 2024 showcased the strength of our brand. Our unwavering focus on customer satisfaction – bolstered by a robust dealer network, advanced OEM support, and fit-for-purpose products – has ensured we deliver value and reliability to our clients. These efforts are paving the way for a better and more sustainable transport future in South Africa.”
The Quon range has been further enhanced with cutting-edge features, including traffic eye control cruise with stop-and-go functionality, improved driver alert systems, and emergency brake signals.
“Our goal is to be the ultimate business partner for our customers, consistently evolving our products to meet their business demands, while exploring innovative solutions in the new energy vehicle (NEV) space through global collaborations,” said sales director Rory Schulz.
Driver training and service agreements
UDTSA places significant emphasis on driver training, which remains a cornerstone of its customer support strategy. In 2024, the company was recognised at the global finals of the Extra Mile Challenge, underlining its commitment to vehicle performance and driver excellence.
Minimising downtime is central to UDTSA’s mission. The company’s service agreements offering – including the UD Trust Standard and Ultimate plans– has gained substantial traction, achieving 50% year-to-date growth in 2024.
Efforts to ensure seamless parts availability have been strengthened through predictive systems and enhanced collaboration with supply chain partners in Japan. This has resulted in a 96% parts availability rate (the highest in a decade), ensuring trucks spend more time on the road and thus boosting productivity and profitability for customers.
Challenges in the logistics industry
The logistics industry is undergoing rapid transformation, and today’s truck operators face increasingly complex challenges. Rising costs, shifting regulations, and technological advancements are reshaping business approaches to transportation and fleet management, requiring a sharper focus on efficiency, sustainability, and cost control.
The cost of logistics continues to climb, with the price of moving a tonne of goods increasing significantly in recent years. This highlights the urgent need for operators to closely monitor and manage their costs. Furthermore, the introduction of carbon taxes and evolving environmental regulations is adding to the financial pressures faced by fleet owners.
“Fixed costs, such as vehicle repayments, insurance, licensing, and driver wages, remain constant regardless of whether a vehicle is on the road or idle. In South Africa, evolving economic conditions, including fluctuating interest rates, are expected to play a pivotal role in shaping the financial decisions of logistics companies this year,” said Schulz. “Operators are advised to keep a close eye on interest rate forecasts, as adjustments could significantly impact financing costs.”
Technological advancements
Technological innovation continues to redefine the logistics sector. Tools such as telematics systems, driver behaviour monitoring, and predictive maintenance solutions are now essential for enhancing operational efficiency. Additionally, artificial intelligence (AI) and automation are becoming increasingly influential, enabling operators to make data-driven decisions.
“While technological innovation offers opportunities, it also presents challenges. The need for skilled technicians, engineers, and drivers trained to handle sophisticated systems is growing,” Schulz added. “South Africa faces ongoing challenges with literacy, numeracy, and technical skills development, which must be addressed to meet the demands of modern logistics.”
Local manufacturing and supply chain
“The trucking industry in South Africa is described as a ‘knock-down (KD) business’, meaning there is limited local investment by original equipment manufacturers (OEMs) in producing truck components such as chassis frames and cabin panels – due to the low volumes of the truck total market. Instead, these parts are typically imported, resulting in a supply chain heavily reliant on international markets. Only high-commodity components like batteries and windows are sourced locally. This used to include steel, although this is now likely also disappearing,” said Van den Heede.
While the car manufacturing sector in South Africa has seen significant development, truck body manufacturing remains underdeveloped. Repair costs for imported parts, particularly cabin components, are susceptible to fluctuations in global steel prices. The ripple effect of rising steel prices, both locally and internationally, could push up repair costs across the industry.
Transition to cleaner energy
Transitioning to cleaner energy solutions remains a pressing challenge for the trucking industry. While Euro 5 emissions standards have been advocated for their ability to reduce harmful pollutants, South Africa has delayed implementation. Adopting Euro 5 offers both environmental benefits and cost savings through improved fuel efficiency, but the slow pace of adoption raises concerns over government commitment and policy clarity.
“Similarly, South Africa has yet to establish a comprehensive policy for electric vehicles (EVs). While the know-how and skills exist, the industry lacks sufficient incentives and infrastructure to support EV adoption,” noted Van den Heede.
“As the transport industry navigates the transition to sustainable mobility, we recognise the challenges posed by infrastructure and regulatory frameworks for new technology vehicles. However, at UD Trucks, we remain committed to innovation and are actively driving progress in this space,” he continued. “While the cost of EV technology remains a consideration, we are forging ahead with solutions that align with our customers’ needs. We look forward to continued positive engagements that will help create a more enabling environment for a gradual and effective transition towards sustainable trucking in South Africa.”
The debate over hydrogen versus battery power continues, with hydrogen emerging as the preferred solution for heavy-duty trucks. Hydrogen technology aligns more closely with existing fossil fuel infrastructure, as converting petrol stations into hydrogen refuelling points is far more practical. Conversely, battery-powered trucks face significant hurdles, including the need for expansive charging spaces and reliable electricity supplies.
“Hydrogen’s energy density also makes it a practical choice for long-haul, heavy-duty applications. While hydrogen is volatile and requires careful management, the trucking sector views it as a viable alternative to traditional fuels, particularly for larger vehicles,” Van den Heede elaborated.
“In contrast, hybrid technologies – featuring smaller fossil fuel engines supplemented by battery systems – have proven complex and costly to implement. Prototypes have been explored, but scaling up hybrid solutions for trucks remains a challenge,” he added.
“The broader challenge lies in transforming South Africa’s infrastructure to accommodate these new energy systems. Building the necessary charging or hydrogen refuelling infrastructure requires significant investment and planning,” he noted. “Additionally, the electricity supply in South Africa, which remains heavily reliant on fossil fuels, complicates the argument for battery-powered trucks as a sustainable solution.”
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