South Africa’s leading source of news and information on all aspects of the motor industry Issue 23 | 24 May 2012 www.autolive.co.za THE HEAT IS ON Hello Etios, so long Tazz! Toyota’s new Etios is designed to scupper VW’s plans for market leadership Full Story on Page 2 Interview: Honda’s Interview: Citroen SA’s Hyundai’s H1 gets Tribute to Ove European Head Didier Gerard our blessing Andersson Page 6 Page 7 Page 14 Page 23 Subscribe for free @ www.autolive.co.za Page 2 Editor Stuart Johnston [email protected] Taking the Fight to VW General Manager Roger Houghton The launch last week of the Toyota Etios marks Toyota’s long-awaited re-entry into the [email protected] lucrative sub-B segment of South Africa’s new market, since the run-out of the Tazz Sales in 2006. Bruno Lupini [email protected] By Stuart JohnSton Globally, Volkswagen has stated Address that it wants to be the World’s number Suite 106B, MISA Centre one carmaker (in sales terms) by 2018. 12 Fir Street, Northcliff Since Tazz’s withdrawal of what was Last year VWSA enjoyed a few months Johannesburg, 2195 essentially a 1988 model constantly as overall market leader here, but in the freshened up with cosmetic changes end Toyota retained its Number One Tel over a period of 18 years, the sub-B slot that it has held for over three dec- +27 (0)83 450 9255 segment has grown to become the big- ades. This year the fight is much clos- gest model segment in the country. er, so for Toyota the new car couldn’t Fax Volkswagen was quick to take advan- have come at a better time. In the first +27 (0)86 505 8957 tage of this gap, first with its (now dis- four months of this year Toyota led Website continued) Citi Golf range, and more VWSA in overall vehicle sales by just recently with the Polo Vivo, another 538 units! www.autolive.co.za car that is essentially a reincarnation of Volkswagen are well aware of the © 2012 WCM Media CC a previous model. challenge the Etios represents, and last Ford too has had great success with Sunday the company carried a wrap- Production its Figo, which, again, is a revamp of the around advert in the Sunday Times’ Marketing Support Services previous-generation Fiesta. What the Calvyn Hamman, Toyota SA’s Lifestyle section stressing that the VW +27 (0)12 346 2168 new Etios has going for it is that it is a Senior Vice President, Sales and Polo Vivo was South Africa’s best-selling [email protected] brand new model, only introduced 18 Marketing. car with prices starting at R106 100. months ago in India. However, being In an interview with Toyota South Layout and Typesetting earmarked for “developing countries”, ambitious targets for this model. Africa Motors’ Vice President of Sales Bonita Tuson the car has a somewhat retro feel to it, Indeed, sales of between 1 500 and and Marketing, Calvyn Hamman, Disclaimer and a short drive during last week’s 1 700 are projected, and these are, ac- AutoLive posed the question of just launch revealed it to feel and behave cording to Toyota South Africa Motors how important market leadership is to While reasonable pretty much like a Corolla of perhaps a Vice President of Product and Demand Toyota SA. precautions have been generation ago. This is not necessarily Planning Glenn Crompton, “based on Q: We are talking Etios. How impor- taken to ensure the a negative, as the overall feeling of the demand that we have already received tant is this model for Toyota in accuracy of the advice car is one of Toyota-like dependability, from our dealer network.” South Africa? and information given to while not exactly being exciting in any Volkswagen South Africa has en- CH: For many years Tazz was an im- readers, neither the Editor, area other than its ability to handle poor joyed leadership in the passenger car portant model for South Africa, the Proprietors, nor the road surfaces. market for some years now, thanks to but we could not stretch produc- publishers can accept The pricing is keen, with the Etios the success of both its Polo Vivo and tion of the model any further. So any responsibility for any kicking off at R115 800, probably good Polo models, which are produced at its damages or injury which enough for Toyota to reach its very Uitenhage factory. continued on page 5 may arise therefrom. Subscribe for free @ www.autolive.co.za Page 3 Editor’s Note Planned Investments Under New Government Scheme Now At R12-Billion There are so many facets to mo- toring and the motor industry an increase of 1,8% over the number at the that deserve our attention. First end of 2011. and foremost there is the motor Production capacity utilisation in all vehicle itself. A wonderful inven- sectors remained close to record levels in tion that dates back, officially, the first quarter of 2012. On the other hand, to 1886, but there were earlier sales in all sectors registered significantly steam-driven devices that prob- slower growth during the first quarter of ably qualify under the heading of 2012 compared to the corresponding period “ motorised personal mobility”. in 2012. Total new car sales of 110 719 units I recently had to give a speech was 10% up on the situation a year ago, at a British Car Day, organised by the Pretoria Old Motor Club, while commercial vehicle sales of 46 024 and in researching facts for my 15 minutes of fame I discovered units was only 347 units or 0,8% up on the that the second car on South African soil was British, pretty much figure at the end of the first quarter of 2011. a four-wheeled bicycle powered by a single cylinder engine and NAAMSA’s Managing Director, NAAMSA’s latest quarterly review manufactured by Royal Enfield, a name well known to motor- Nico Vermeulen. also gives details of global vehicle produc- cycling fans. For the record, the first car in SA, as many of you tion in 2011, which reached 80 092 840 readers will know, was a Benz Velo, which thundered around the Planned investments by local vehicle and units, which represents an increase of Berea Park soccer field in Pretoria in January 1897 component manufacturers under the 2,5-million vehicles (2,3%) over the 2010 In fact there are still Royal Enfield motorcycles being manu- Automotive Investment Scheme, which is a figure. In contrast vehicle production in factured in India, which brings me to the global interconnectivity major facet of the Automotive Production SA rose to 532 545 units last year, com- of the motor industry now, in 2012. and Development Programme, which pared to 472 049 units in 2010, which Last issue we reported on the partnership between the Indian comes into force on January 1, 2013, had was an increase of 12,8%. However, this company Mahindra & Mahindra and the Korean enterprise, already reached R12-billion at the end amounted to only 0,66% of global vehicle SsangYong, two relatively young companies making global in- of February. production, which is down on the high roads from regions that were not at all industrialised 100 or so This information is revealed in point of 0,80% in 2008. years ago. NAAMSA’s quarterly review of business Last year the SA motor industry ex- These companies from “emerging” regions are producing conditions in the local vehicle manufac- ported 272 457 vehicles to 80 countries cars and commercial vehicles that improve radically from one turing industry for the period January- worldwide, with Europe and Africa repre- model cycle to the next. Quite naturally there is a lot of technol- March 2012. It is made up of R8,7-billion senting the major destinations with 97 882 ogy “acquisition” on the part of the new motor-makers from the for investments by vehicle manufacturers vehicles or 35,9% going to the Eurozone established players. You only have to visit an international motor and 3,3-billion by the local automotive and 67 442 vehicles or 24,8% of total ex- show to see how blatant the Chinese are in their idea-mongering. component industry. ports destined for African countries. While other media people are framing shots of exotic new mod- Expenditure by the seven major vehi- Growth in exports to Africa last year was els or prototypes with industry heads or pretty girls posing next cle manufacturers and two truck produc- thus 58,6%, compared to an increase of to them, the Chinese “reporters” are zooming in for close-ups of ers planned for 2012 currently stands at only 7,9% into Europe. door hinges and wheel-arch retainer clips! just over R5-billion, which is the highest The director of NAAMSA, Nico The fastest growing motor markets in the world right now are amount since the record investment of Vermeulen, said in the quarterly report that India and China, and it will be fascinating to see just when the R6,2-billion in the boom year of 2006. new vehicle sales in SA in 2012 will remain manufacturers from these countries start becoming innovators The automotive industry’s contri- a function of the performance of the overall rather than increasingly skilled imitators. bution to SA’s Gross Domestic Product economy, with current projected growth of No doubt these new players have already learned from the (GDP) is estimated at 6,8% for 2011, com- 7,5%.