Iveco South Africa has identified two potential partners – one in Gauteng and one in the Eastern Cape – to enable its local assembly ambitions aft it seeks to raise annual sales to 15,000 units by 2010 says MD Eddy Chvatal (top). Above: Iveco Putco bus in South Africa.

Commercial vehicle company Iveco South Africa has identified two potential partners – one in Gauteng and one in the Eastern Cape – to enable its local assembly ambitions, says MD Eddy Chvatal - reports Creamers Media's Engineering News.

“We’ll provide the completely knock-down kits and the selected partner will assemble the vehicles for us. Negotiations are continuing, but we do not foresee any major technical problems, and should be able to make an announcement in the second half of next year. The vehicles to be assembled will be a Chinese-sourced truck range “adhering to European standards”, says Chvatal.

Iveco South Africa, the local arm of the Italian group, currently sells vehicles into the medium commercial, heavy commercial, extra-heavy commercial and bus markets. The strategy is to continue sales into these markets, but to expand the range on offer. The current, more sophisticated European range is to remain, with the simplified range from Iveco’s Chinese partner plants to enter the local market also.

Iveco is also set to introduce the Power Daily – not be confused with the current Daily van – in early 2008. This Chinese-sourced minibus will be imported as a completely built-up unit. It will be aimed at the minibus taxi market, and will feature a 17-seat configuration, says Chvatal.

The introduction of the new truck range and the Power Daily forms part of Iveco South Africa’s strategy to sell 15 000 units a year by 2010. In 2005 sales volumes reached 800 vehicles, growing to an expected 1 650 units this year.

“If we were able to supply more, we could have sold more,” says Chvatal. He says the outlook for next year is positive, with sales expected to grow further in a local commercial vehicle market buoyed by rising infrastructure spending. “In 2008, we expect a further healthy increase in sales when we introduce the new product line-ups,” says Chvatal. New dealerships form an integral part of Iveco’s expansion strategy, with seven new dealers opening their doors in 2007 and 2008, such as the flagship outlet in Midrand, next to the N1 highway.