Volkswagen South Africa has entered the commercial vehicle market for the first time, taking on players such as DaimlerChrysler and Toyota.

This announcement was made at the launch of the automotive maker’s LT range of commercial vehicles.

The LT is one of Europe’s most popular cargo carriers and can be use for numerous purposes, including ambulances, tour buses and mobile workshops.

VW said that it was to set up 11 dealership networks which would span South Africa, Namibia and Botswana.

These would be up and running by the middle of next year and offer clients a 24-hour sales and breakdown service.

Although the new LT range could be converted into a 22 passenger vehicle, the group did not intend to enter the recapitalisation programme for taxis.

The units which offer flexibility, economic value, high technology and long life would retail between R206 000 and R267 000 and would include a two-year unlimited mileage warranty.

VW expects to sell 4 500 units.

VWSA sales and marketing director Jolyon Nash said while the local operations only produced the Caddy model locally, the group’s Brazilian plant manufactured trucks and buses.

He said that conditions in Brazil were similar to South Africa; an emerging market with similar road conditions. Since 1997, this plant had grown its market share of the bus and truck market by 27 per cent.

ECDC Automotive sector leader, Zola Tshefu comments:
Any growth in market share or vehicle range by an Eastern Cape-based OEM is good for the province because it increases our importance within the automotive sector. Together with Daimler Chrysler in East London, it helps the province to build its profile as the “Michigan” of the South Africa.

While the benefits generated by this fully imported range are limited, it shows that the government’s Motor Industry Development Programme (MIDP) makes it possible for vehicles of us to keep abreast of the latest transportation trends in overseas markets which were not economically feasible prior to the MIDP.