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Iveco targets double-digit Daily market share

Commercial commerce: Iveco is aiming for 10 to 12 per cent market share of its Daily van and cab-chassis range, up from 6.7 per cent today.

Product improvements, dealer network expansion to spur Iveco growth in Australia

28 Nov 2017

IVECO is targeting a double-digit share of the heavy commercial truck market in Australia on the back of several key selling points including product improvements, a local manufacturing presence and increased dealership numbers.

Speaking to GoAuto at the launch of the updated Daily van and cab-chassis range last week, Iveco product manager for Australia, New Zealand, South-East Asia and Japan Marco Quaranta told GoAuto that growth across all segments is achievable.

VFACTS figures show that to the end of October this year, Iveco has sold 1469 vehicles – up 14.1 per cent on the same period last year – which gives it a 4.9 per cent share of the heavy commercial sector (which includes Daily in the 3.5-8.0t GVM segment).

Daily currently holds a 6.7 per cent share in the LD (light-duty) segment, with 964 combined van and cab-chassis sales – a 20.7 per cent increase year-on-year, although it still trails segment leaders such as the Isuzu N Series (3873), Mercedes-Benz Sprinter (2466) and Fuso Canter (1840).

Iveco is aiming to secure a share of around 10-12 per cent of the LD segment, which would equate to more than 1600 sales a year.

Mr Quaranta said this year’s segment growth for Daily can be attributed to its appeal across a broad range of customer bases.

“In light utility, the Daily is becoming more popular in the market, it’s really entering in segments which are traditionally the core of the tradesmen, couriers, refrigerated transport,” he said.

“We have expanded our network, so we have specialised Daily points in metropolitan areas that is one of the main actions we took to put the Daily in the public (eye).

“We are also growing in the campervan market, we are becoming the preferred choice for most of the body-builders because of the automatic, the strength, the easy body-building on our chassis and so on.”

To bolster Daily sales, Iveco has also updated its off-road-focused 4x4 variant by adding airbags for the first time, a requirement for many organisations looking to purchase fleet vehicles.

Iveco already sells Daily 4x4s to companies such as Rio Tinto, BHP and Queensland Fire and Emergency Services, and Mr Quaranta said extra sales volume would largely depend on the size and timing of fleet contracts.

“These companies usually buy a bulk of 50, 100 at a time, so it can be as low as 50 or as high as 500,” he said.

“It depends on very much the buying period and contract, but the markets that we are specifically targeting are where our Japanese competitors play in terms of 4x4 trucks, but also the likes of LandCruiser and Patrol which are more service vehicles while we have a higher payload and more of a 4x4 truck than say a utility vehicle like the LandCruiser.

“We aim to triple our presence in the 4x4 market with the airbag, but then again it all depends on when a company puts the tender out, and usually they look at 10 years’ supply or something like that.”

While currently offered solely with a six-speed manual gearbox and 125kW single-turbo-diesel engine, Mr Quaranta indicated that the 4x4 would likely be offered with an eight-speed automatic transmission and 150kW twin-turbo-diesel combination in around 18 months’ time.

In the MD (medium-duty) segment, Iveco holds a 1.2 per cent market share with 71 sales so far this year, and Mr Quaranta said that growth to four or five per cent share could be achieved.

“We have the right product, we offer Euro 5, Euro 6, we offer safety features, comfort and total cost of ownership, which are really leaders in the market,” he said.

“And, again, there is a cumulative effort between us and our network to put it in the mind of our customers and in the market, so it’s through communication, media, advertising campaigns, continuous hammering of the segment so in the end when the customer wakes up in the morning and decides to buy a medium truck Iveco is one of the choices.”

As for the HD (heavy-duty) segment, Iveco plans to leverage its local manufacturing presence to increase its market share in the segment to 10 per cent, up from 4.6 per cent currently.

“There are still customers in Australia that value the locally produced product,” Mr Quaranta said. “Maybe it’s a feeling that it’s built in Australia, maybe there is a bit of national pride, but we have noticed there is an attention to that, still.”

Iveco recently secured the waste tender for Brisbane City Council, to the tune of 120 units – another area for growth.

An expanded dealer network, particularly in key metropolitan areas, is a further reason for Iveco growth, with negotiations underway for five or six new outlets.

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