Cautious optimism for LCV sector heading into 2023

Ford led the way in the annual sales table in Ireland, recording 5,885 units (24.88% of the overall market). The Ford Transit Custom topped the sales charts with 2,274 units sold, while its bigger counterpart, the Ford Transit, was third on 1,483 units. In between was Toyota Ireland’s Land Cruiser Commercial, its 1,644 units sold helping the Japanese brand to third in the overall light commercial sales league. Completing the top ten were the Renault Master (1,209 registrations), Volkswagen Caddy (1,094), Renault Trafic (1,023), Peugeot Partner (996), Ford Transit Connect (948), Citroen Berlingo (921) and Mercedes-Benz Sprinter (904).

Fleet Van & Utility asked representatives from the LCV brand importers and distributors for their overall view with regards the marketplace heading into 2023. From the various contributions, there seems to be light at the end of this business tunnel, despite recessionary talk and other ongoing matters.

Chief executive Mike Hawes of the Uk’s Society of Motor Manufacturers and Traders said: “ while demand for new vans remained robust throughout 2022, replicating last year’s high levels of fleet renewal was always going to be a challenge with relentless supply chain disruptions and wider economic malaise. A return to growth is expected in 2023, but if this crucial sector is to deliver for the economy, society and the environment, action is needed from all stakeholders, particularly in the areas of electric vehicle charging infrastructure and fiscal frameworks, enabling more van buyers to make the switch.”

ForD IrElaND

John Manning, Market Lead, Henry Ford & Son Ltd., began his overall view of the LCV & pick-up marketplace during 2022 and into 2023, by saying:

“It was another tough year for the industry, still suffering the aftershocks from the Covid pandemic and difficulties with vehicle supply that affected all of the key players. This is reflected in the 17.7 per cent drop in new LCV sales during 2022 (versus 2021). It was heartening to see Ford retain its traditional leadership of the LCV sector in Ireland during 2022. In a tough trading environment, our new vehicle sales tally dropped by 15.9 percent but we still managed to grow our market share from 24.3 per cent to 24.9 per cent in 2022. The Transit retained its crown as the most popular CV on the Irish market.

In the pick-up segment, with a total of 669 units sold, the Ford Ranger was again top of the class in spite of sales dropping by 50 per cent year-on-year which was as a direct result of the vehicle supply issues. The good news is that for 2023 we have new Ranger models arriving here, including an exciting new version of the Raptor and we are very confident that supply issues will not have as adverse an impact as witnessed during 2022.

Similar to the past couple of years, the used CV market is very buoyant at the moment. Of course, a key driver in this regard is the new vehicle supply issue that the industry is facing but equally, the boom in e-commerce is having an effect too. Many companies are having to not only renew their fleets but are also needing to increase the number of vehicles on the road thus increasing the demand for new or used vehicles.” with regards to the programme of electrifying its LCVs, John added that Ford’s EV transformation plans are continuing apace: “during 2022, the all new E-Transit arrived in Ireland and very quickly was pressed into service with customers across the country. Ireland’s largest parcel delivery company, dPd, is relying on a broad fleet of E-Transit models to help it meet its zero emissions targets. Ford Ireland has also secured orders for the vehicle from a range of private and public companies and organisations. Overall, Ford will introduce seven new electric vehicles in Europe by 2024 – three passenger vehicles and four commercial vehicles, uniquely designed to meet the mobility of a modern Europe.

John is optimistic that improvements will be seen during 2023 in relation to the component supply issues and feels that the increase in the purchase cost of vehicles has not affected new sales.

Regarding pending arrival of new models, John mentioned that the all-new electric Transit Custom one-tonne van will arrive later this year, to be followed by the electric Tourneo Custom multi-purpose vehicle. 2024 will see the launch of the smaller next generation Transit Courier with an EV powertrain.

“In addition to the new models mentioned above, in 2023 we will be launching Ford Pro in Ireland,” explained John in conclusion. “It’s a global business and brand within Ford that is dedicated to delivering an always-on, one-stop shop for all commercial and government customers – powering their growth and productivity – today and tomorrow. Ford Pro is effectively a comprehensive suite of software, charging, financing, services and support on Ford and non-Ford products, helping to reduce fleet downtime and overall total cost of ownership. Ford Pro makes the complex transition to electric easy – providing ICE and electric vehicles seamlessly paired to intelligent Telematics tools, charge management software, hardware, services and customer support that enables mixed fleets to operate without disruption and help E-Transit and soon to be launched E-Transit Custom, reach maximum productivity and capability within electric fleet operations.”

VolkSwaGEN coMMEcIal VEhIclES IrElaND

Alan Bateson, Managing director, Volkswagen Commercial Vehicles Ireland noted of the outgoing year: “The overall market was somewhat curtailed by component supplies that restricted production, the market should have reached circa 26,000 for a second year but was nearly 6,000 short of this or -23% year on year (excluding car derived vans). The used market is also curtailed by the decreased new total market, as a result, used supply is short as a knock on and process and residuals are strong.

Component supply issues are improving but logistics (road, rail, sea transport) are now adding to the lead time of production and supply of new vehicles. This will most likely continue through 2023 with no clear end in sight, albeit plans are developing to remedy issues where possible.”

Asked about the ongoing increase in CV purchase costs, Allan replied: “Inflation is across all business sectors and we have seen price increases linked to materials costs and production costs, however, with our own financial lender, Volkswagen Financial Services we have been able to manage the costs for customers through leading lending rates and methods along with TCO programmes which also manage service and repair, i.e. monthly lease with no deposit.”

V wCVI’s entry into the BEV landscape is progressing well, he added. “Launching the Id Buzz Cargo was our first big step and has proven to be a huge success. This success will be further developed with the launch of the Transporter 7 1-Tonne BEV in 2024 and the E-Crafter shortly thereafter. Our mission is clear with our ‘ way to Zero’ focus and this will see even more new models launched to support this in the years ahead. we also look forward to the all new Amarok in May.”

toYota IrElaND

All good on the killeen Road, dublin, where Toyota Ireland is pleased with its overall LCV sales performance according to Cathal Ryan, Corporate Sales, Toyota & Lexus. “Toyota commercials performed exceptionally well in 2022 with registrations increasing by 34% year on year, with the Proace City and Proace models selling particularly well. Customer demand in 2023 continues to be strong for both diesel and electric models. while new model supply remains challenging for the coming year, Toyota expects to fulfil many orders within 16 weeks. As in 2022, used commercial vehicles (particularly Toyota commercials) continue retain strong trade-in values.”

In relation to the components shortage challenge, Toyota was well placed. “In 2022 Toyota had some of the shortest lead times in the market for commercial vehicles, and within reason this is expected to continue for 2023. Placing orders early remains key to a positive customer experience. As a result of global component parts scarcity, all manufacturers have been forced to increase vehicle retail prices. In the short term thankfully, in many cases, the increase has been offset by increased trade-in values, meaning the cost to change remains good value. This can be a little more challenging where a customer doesn’t have a trade-in.”

“Consumer appetite for Toyota EV commercials (City & Proace) is particularly strong, and the user experience has been very positive. Toyota Ireland’s EV strategy very much focuses on matching the appropriate EV to the customer’s requirements. This has been a learning process for both Toyota and our customers and so far, it’s going really well,” concluded Cathal.

cItroËN

Citroën Ireland, which increased its share marginally (by 0.5% to 6.8%), aims to increase its presence in the LCV market with a broader offering of electric powered light commercials and car derived vans (CdV) this year. “ we have recently brought C3 Aircross SUV Commercial to the range, adding to our very successful C5 Aircross and C4 CdV models. Our CdV selection now offers a comprehensive range of load dimensions and volume capacities to suit the needs of our customers,” explained Cathal Lanigan, Senior Marketing Executive, Citroën Ireland.

FIat proFESSIoNal

Fiat Professional, now distributed by Gowan Auto, is basically starting with a clean sheet of paper. A number of dealers have been signed up already as the resurgence of the Italian brand continues. Now under the Stellantis umbrella, Fiat Professional has refreshed its flagship ducato and recently added a reshaped Scudo and doblò, the latter two vans based on existing Peugeot/Citroen vehicles.

Commenting on the road ahead, Alexis Moore, Marketing Head of Fiat Professional for Gowan Auto said: “ while supply remains a consistent issue we are confident here in Fiat Professional that we will see healthy stock levels to enable us to promote the brands in the Irish market.”

She noted that with Stellantis moving all of its LCVs to common shared platforms, this is also true of the BEV variants of the LCV’s. doblò-e, Scudo-e and ducato-e will all hit the Irish market this year.

opEl

According to Fergal Marron, Head of Fleet at Opel Ireland, there remains a considerable excess of demand over supply through 2022 into 2023, noting that as the economy grows, businesses and tradespeople are looking to expand and replace their van fleets. “The disruption to parts supply and repairers’ businesses means maintenance and repair of older vans is being delayed, putting more pressure on van rental companies for short- and medium-term rentals, increasing their demand for new vans. Lower availability of used vans from the Uk has reduced that source of vans too, also increasing demand.”

“ we see some small improvements in vehicle availability but predictability is still quite difficult, we are having to accept more what we can get built for us instead of being able to reliably place orders with certain time-lines. Opel’s van sale performance in 2022 was very strong, finishing with a market share of over 9%, and we hope to build on this in 2023. Obviously the future is electric, and van users and owners are becoming increasingly comfortable with the electric experience, while businesses are moving to EVs to achieve their sustainability goals.”

pEuGEot

Peugeot Sales director at Gowan Auto, Luke Messitt is confident of an increased market into 2023: “demand remains high with many fleet companies planning to renew their fleets. The component shortage and the war in Ukraine had a huge effect on LCV production, mainly affecting our Partner van range. despite these difficulties, the Peugeot dealer Network have done a phenomenal job in keeping our customers informed and managing their expectations.”

Luke added that the retail price increases have not really affected sales to date due to demand continuing to outweigh supply. He made an interesting point in relation to the move towards electric: “Peugeot already has a full electric option for each model in its LCV range, with demand for the Partner and Expert models particularly strong. [Sales of] our EV commercial vehicles have been mainly driven by Semi-State, Local Government and other tender-based businesses.”

MErcEDES-BENZ

Fergus Conheady, Sales Manager at Mercedes-Benz Vans in Ireland was happy enough with sales during 2022, despite facing constant challenges: “ we hit our factory targets, however, these were adjusted to take account of lack of availability of product. There is general lack of supply within the market which has ensured that all available product is being sold, however there are more negative comments coming back from the market than in recent times so we’re very conscious of keeping a finger on the pulse to see how the market responds throughout the year. Our challenge with BEVs last year was lack of product. we are hopeful of this freeing up and being able to deliver more electric vans during the year. we look forward to introducing the new Citan, scheduled for a Q1 launch.”

Text: Jarlath Sweeney - editor@fleet.ie

A 565 kilometre, 8-hour round trip from Mayo to Wexford provided plenty of distance and time to assess the latest Fiat Scudo in its new body guise. But the journey was more of a recollection rather than a reconnaissance, as the van the Scudo is based on is already quite familiar - being the mass production model from the PSA Group that has given us the Peugeot Expert and Citroën Dispatch.

First launched in 2016, these two similar versions were subsequently joined by a version supplied to Toyota - the Proace, while more recently new sister brands in the PSA family, Opel and Vauxhall adopted the platform for the