According to Mo Ebrahim, Marketing Communications Specialist at Isuzu Motors South Africa, there are a number of unique factors driving demand for Isuzu’s vehicles in a market marked by challenges.
“It’s less about the supply and more about the strong demand for used trucks due to affordability, economic conditions, and their durability,” explains Ebrahim. Despite the wider market being flush with vehicles, Isuzu’s used trucks remain scarce, thanks to their reliability, high resale value, and robust aftersales support.
Why demand for used Isuzu trucks remains high
Ebrahim outlines several contributing factors to the popularity of Isuzu’s used trucks, including economic pressures and a growing e-commerce sector. “Key industries like transport, agriculture, and construction rely heavily on used trucks,” he says. “The affordability of used vehicles, coupled with cost-saving benefits and financing constraints, makes them a more accessible option for businesses, especially SMEs.”
Moreover, the market has seen a surge in demand due to supply chain issues and shortages of new trucks. “In the past, we have seen limited availability and long lead times for new trucks, but businesses still need to keep moving goods,” he explains.
One of the advantages of buying used, Ebrahim notes, is easier access to financing. “The cost of a used truck is typically lower, which can make it easier to secure financing. However, SME customers, due to their risk profile, can still face hurdles with traditional banks,” he warns.
For Isuzu specifically, the used market is viewed differently (versus some other companies). “As an OEM, we don’t focus much on used truck sales – that’s left to the dealers – but even they find it hard to keep up with demand. Used Isuzu trucks sell so fast that dealers often sell into the future pipeline of supply.”
The appeal of Isuzu trucks in the used market
He says that, unlike some other brands, Isuzu trucks hold their value exceptionally well in the used market. “When someone buys a new Isuzu truck, they know they won’t face significant losses when it’s time to resell. The truck’s resale value is a key advantage,” says Ebrahim.
He attributes this to the brand’s reputation for reliability and customer confidence. “Isuzu trucks are built to last, which means customers can rely on them for extended periods. When it’s time to replace them, they still fetch a good price, which often serves as a deposit for their next new Isuzu truck.” Those used Isuzu are in high demand.
Oversupply in other segments of the market
The broader used truck market in South Africa paints a different picture. Ebrahim points out that certain segments, like extra-heavy commercial vehicles (EHCVs), are more prone to oversupply. “Brands like Mercedes-Benz, Volvo, and Scania face elevated stock levels due to shorter full-maintenance lease contracts,” he notes. “FAW’s dominance in the EHCV space has further compounded this issue.”
This surplus often leads to market corrections, such as price reductions or increased exports. However, in the medium commercial vehicle (MCV) and heavy commercial vehicle (HCV) segments – Isuzu’s primary focus – the dynamics are distinctly different.
“Our customers in these segments tend to hold onto their trucks for longer periods, only replacing them when it’s absolutely necessary,” says Ebrahim. “This creates a steady, ongoing demand for Isuzu trucks, without the need for significant market corrections.”
The long-term outlook
Looking ahead, Ebrahim sees continued strength in Isuzu’s used truck market. “The strong demand and limited supply mean we don’t foresee any major shifts or corrections in our space,” he says. “Instead, we anticipate ongoing growth, driven by our commitment to quality, durability, and aftersales support.”
The South African used truck market may be characterised by oversupply, but Isuzu has carved out a unique niche. Clearly, its focus on quality and reliability has created a demand that far outpaces availability, offering a silver lining in a challenging market. As Ebrahim aptly summarises, “For Isuzu, the story is different. We simply can’t keep up with the demand.”
