Hino South Africa is looking forward to 2015 for a number of reasons, and according to the company’s Vice President, Ernie Trautmann, his team is very pleased that it can be quicker out of the starting blocks this year after a slow sales build-up in 2014 due to some stock shortages; sales in the second six months of 2014 were 33% higher than in the first six months.
Total Hino sales of 3 844 units was close to breaking the 4 000 barrier
The reason for the slow start in 2014 was the relocation of the local Hino assembly operations to a new facility in Prospecton over the 2013/14 shutdown period. Rainy weather added to the challenge of building the new facility to a tight schedule, but now the factory is functioning well and Trautmann says the target of exceeding 4 000 annual unit sales for the first time is in 2015 a very real prospect.
Last year total Hino sales of 3 844 units was close to breaking the 4 000 barrier and came during a year in which a new monthly sales record of 455 units was set in August – beating the previous best of 425 units attained only five months earlier – while the 356 units sold in December was the highest ever total for this traditionally slow-selling month.
The Hino SA Vice President says he is very pleased with the progress being made in selling the Hino 700-Series into the extra-heavy segment of the market, where a 3% share was attained and several of the major transport operators were among the buyers of these models.
“This is an area of our operations where we will put even more focus and manpower this year,” he added.
Hino products, a long-time favourite with the farming community
“This includes an expansion of our Hino 700 Ambassadors programme with dedicated sales executives in the dealerships who interact regularly with the operators of fleets of extra-heavy trucks.”
Trautmann says there were many other highlights for Hino during last year. These included the Hino 300 putting up an outstanding performance in the local comparative group test, strong interest shown in Hino products at the Nampo Agricultural Show to entrench the brand as a long-time favourite with the farming community, and winning three awards at Hino’s regional meeting in Dubai for distributors in the Middle East, West Asia and Africa.
Current dealer network of 19 exclusive truck dealers and 45 dual dealers is seen as the correct mix and footprint for their important initiatives in 2015.
Hino SA was also rewarded for again passing the 3 000 annual sales mark. A further, critical open point in the dealer network was filled with the appointment of a Hino dealer in Cradock, while Hino Isando started operations as the first Hino dealer in the Super Group, and Hino Pretoria North relocated to Pretoria West and changed its name to Hino Tshwane. Another dealer to relocate to far better premises was Hino Germiston, which is now strategically well positioned close to the M2 motorway.
“A particularly important event for Hino South Africa during 2014 was the launch of the global Hino Total Support programme in South Africa…”
The current dealer network of 19 exclusive truck dealers and 45 dual dealers (passenger cars and commercials) is seen as the correct mix and footprint, so the programme for the future will focus on consolidation rather than further expansion.
“A particularly important event for Hino South Africa during 2014 was the launch of the global Hino Total Support programme in South Africa, which we are using to change the mindset of our dealers and their team members to the benefit of their customers,” added Trautmann.
“This is very much an ongoing initiative and we have a number of additional strategies that we will introduce in 2015 to make this programme even more effective in cementing the bond between Hino, its dealers and their customers.
“We are taking a rather conservative view of the overall truck and bus market in 2015 and are forecasting about 2% growth on the 204 figure of 544 units. We will be assisted in increasing Hino sales with the addition of a number of new derivatives during the year, including four in the Hino 300 sector, being two more models with automatic transmission and two more crew cabs.
Important initiatives to implemented in 2015 to better serve dealers and customers
“We see the current low oil price as providing a welcome boost to the overall South African and global economies although we doubt that it will result in significant new vehicle buying over the short term in South Africa. We rather see hard-pressed transport operators using the savings in fuel costs to stabilise their businesses as nobody knows how sustainable the lower price is going to be in the volatile global economy.”
Trautmann explained that there were a number of important initiatives to be implemented in 2015, starting with a restructuring of Hino SA itself so as to better serve its dealers and their customers. Focus will include shortening the lines of communication. This will tie in with Hino Total Support workshops for each dealership where detailed analyses will result in action plans to be implemented in the course of the year.
Extensive sales potential surveys are being undertaken in each region to highlight additional sales opportunities for the dealers, which will go along with programmes to retain existing customers and to bring past customers back into the Hino fold, as well as looking for conquest sales.
Hino SA, and their dealers, has put a great deal of effort into improving parts availability for workshops and retail customers
“After-sales is a key to success in the truck market and here in South Africa. With many trucks operating over long distances, it is essential to have excellent back-up service,” said Trautmann.
“This extends to roadside assistance, which is quick to respond and efficient, very good parts supply and efficient servicing of vehicles by trained technicians. Hino SA, in conjunction with the dealers, has put a great deal of effort into improving parts availability for our workshops as well as retail customers, and we are always striving to make our parts pricing highly competitive in each segment.We also actively promote the benefits of using genuine parts.”
A big drive this year will be to promote maintenance plans for Hino customers in partnership with Toyota Financial Services, which is developing a range of affordable packages.
Another aspect of dealer operations being pursued in 2015 is to develop an effective Hino used truck programme as this is seen as a growth market for the brand and potentially an important contributor to dealership viability.
“Our results in the Scott Beyer Customer Experience survey was very pleasing and showed that all the efforts to promote the Hino Total Support philosophy by Hino SA and dealer staff was starting to have an impact on the customer’s experience.”
“We are positive about the outlook for Hino SA in 2015 and have goals which we believe are attainable, with the ultimate beneficiaries being our customers,” concluded Ernie Trautmann.