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IMPERIAL MARKETS THAT MATTER
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How the Trade in Commercial Motors is Progressing and the Prospects for Future Sales in Britain Overseas. Requirements of Canada, India, Australia, New Zealand, East and
South Africa
ALTHOUGH there are great hopeS of the British trade in commercial vehicles and chassis increasing, throughout the world, it is certain that we must rely to a very considerable extent upon purchases made by Britain Overseas, and in this connection we summarize the latest information on the subject.
It is obvious that with countries which depend so much upon primary products for their financial well being, their buying capacity will depend, in a large measure, on improvements in world basic prices, but already there are signs of a trend in this direction. Another good factor—albeit, perhaps, a temporary one—is our departure from the gold standard, which makes it less expensive to buy from us than from those countries which still remain on this standard.
Throughout the Empire there is a much better feeling in respect of British commercial vehicles, and this despite strong propaganda against them. It is now being recognized that our chassis are unrivalled in their reliability and econotny, whilst the production of lighter and cheaper models is helping, but effectively to cope with competition, we must do more towards the organization of better service, and see that our products have the benefit of representation by firms of sound standing and good repute. However good a product may be, it loses caste if the agents dealing with it are not in this category.
The Problem in Canada.
Whilst buyers in the United Kingdom would not be satisfied with " service " from a depot some 3,000 miles away, so Canadians, who have been accustomed for years to " service " in Canada, or from just over the border, at very short notice, demand it in their own country from United Kingdom firms desirous of cultivating the market That is the secret of success as, at least, two United Kingdom makers of commercial motor vehicles have found. Another, we regret to say, has just given up its Canadian organization, but our regret is tempered by the fact that it has made arrangements for the care of its orphans," and British trade prestige in general will not. therefore be much affected.
Canada is an extremely difficult market for British firms to attempt to enter, as she is not only highly industrialized, but there is also the intense competition from the States. Nevertheless, we ought to do better now in cons mercial motor vehicles, especially having regard to the fact that those from England enter duty free, as against 20 per cent. ad valorem from the States, the percentages before the Ottawa Conference being 12i and 20 respectively.
In the import trade it is only ourselves and the States that matter, and the following figures show the imports for the fiscal years ended March 31 :—
The decrease in imports is, of course, due to the prevailing depression, as Canadian production of commercial trucks and chassis has also fallen considerably, the figures for the past two years being 32,190 and 17,521 commercial trucks and chassis. Of the latter figure, the 1-ton and 30-cwt, vehicles accounted for 10,445 units.
As a matter of interest, the registrations in 1931 for only commercial vehicles for a population of 10i millions, at the outside, were 1135,200.
In an admirable report on the passenger motorcar industry in Canada, issued by the Royal Bank of Canada, it 'is pointed out that the mentality of the Canadian public in respect of motor vehicles is virtually 100 per cent. American, and that, as regards suitability of product, if the United King
dom maker does not produce what is demanded by the Canadian buyer, he cannot hope to gain a strong foothold in the market. It is thought that a combination of interests would be necessary in order to be effective, unless one British firm is in a position to produce and finance a suitable line covering five
or six price fields. Distributors and dealers are not interested in handling a one-price line and desire a combination to give them an opportunity to bid for all the available business in their respective territories. TRey also invariably handle some make of truck, preferably a lighter type of up to 2 tons capacity.
The fairly high duty on American commercial vehicles, as against free entry from this country, should materially assist British makers, as it is designed to do, so far, of course, as the import trade is concerned.
India's Potential Market.
India is in rather a curious position so far as the use of commercial vehicles is concerned. In the up-country districts only cheap types are eonsidered, mid, until recently, this also applied to the towns, -but now there is a tendency towards the employment of slightly better-quality vehicles for town work.
There are comparatively few railwily lines, and the budget of railway expenditure hes been cut down tremendously, so that there is a general trend towards the use of more motor vehicles, and for feeder buses to the railheads.
India is a country of great distances, and a Road Development Board is now in existence. There are many roads that could be used for the lighter classes of commercial vehicle if the tops could be scraped by proper road-grading machines, but American machines would have to be purchased for this roadscraping work, as there are no British types available.
The country is thickly populated in
certain areas, but very poor, and much, of the transport is still done by bullock carts. It has been found, however, that anyone who has ridden in a motor vehicle will not Willingly go back to the older .method of transport.
There is a tendency for buying to be 'one locally from assembly plants, and on Clovernment contracts a preference is given to articles manufactured or assembled locally. It is advisable, when selling vehicles in India, gradually to add to the amount of work done by Indian labour, and in connection with Government contracts it is necessary to pay attention to the Indian Stores Purchases Rules.
As India advances financally, as she must do, there will certainly be quite a good demand for vehicles. In 1929-1930, imports of commercial vehicles numbered 15,306, made up as follow :— United Kingdom, 398; Canada, 2,799; U.S.A., 12,017; other countries, 92. Foy 1930-1931 the total decreased to 8,913,
made up by United Kingdom, 255; Canada, 2,397; U.S.A., 6,197; other countries, 61. In 1931-1932 there was a further reduction to 4,302 vehicles, when the United Kingdom's share rose to 435, whilst the number from the U.S.A. fell to 3,236, and from Canada to 598. The total registrations of commercial vehicles, excluding taxicabs, was 46,888. At present, the import duty for commercial vehicles is 25 per cent, ad valorem, but 74 per cent. preference for United Kingdom imports is proposed under the Ottawa Agreement.
Australia Wants Good Tractors.
In the past America has held the bulk of the market for commercial vehicles in Australia. The greatest pull for U.S.A. products has been in propaganda, by which buyers have been persuaded that American vehicles are more suitable in design, whilst price and good service have been other considerations. A very marked reversion of opinion towards British-built vehicles is now, however, being reported. This is greatly due to the fact that those British types in use have proved to be more economical, more suitable and longer wearing than foreign machines ; consequently, it is hoped that, in the future, we shall have a better share of what market there is.
All imports have fallen very considerably during the past two years, but there is a, distinct inclination towards improvement. In 1930, there were 26,000 tractors in operation in Victoria, New South Wales, Western Australia, South Australia and Queensland, whilst competition from local makers is not severe, despite a bounty, so that suitable British-built tractors might find a market.
One disadvantage is that the Australian pound is at a discount of 25 per cent, on sterling, that is to say, one hundred ponnds' worth of goods in London costs the Australian £125.
A difficulty is that several of the Australian states, in an endeavour to protect the public investment in railways and trams, have passed drastic legislation restricting road traffic.
Prospects in New Zealand.
New Zealand is, to a great extent, oanrying on with its old vehicles, as is shown by the fact that in 1929 the imports of all classes of motor vehicle were ot a value of £800,000, whilst in 1921 the figure had dropped to £90,000.
New Zealand is a most patriotic country, and there is every desire to buy British ; in fact, for the first six months of this year 90 per cent. of the private cars came from England, but this figure does not quite apply to commercial vehicles, because of the considerable sale of Ford, Stewart, International and Republic trucks. General Motors (New Zealand), Ltd., is, however, starting starting a big business in Bedford vehicles.
For the six months ended June, 1932, the number of vehicles imported from England was 195, to the value of £20,121; this compares with 124, to the value of £22,006, for a similar period in the previous year. British makers have very good opportunities in this country. On chassis the duty is 10 per cent on British products and 40 per cent, on foreign.
There is one section in which the British maker appears to be weak, and that is in the development of suitable agricultural tractors at a moderate price. New Zealand has spent £70,000,000 in building railways, many of which now seem to have been unnecessary, for it is an ideal country for a well-arranged road-transport system, no part being more than 100 miles from the sea.
British Progress in East Africa.
In East Africa, American and Canadian-a.ssembled vehicles used to have it all their own way so fai as conunercial vehicles were concerned, but here again there is a change ; in fact, one important selling organization is now obtaining its lorries from the United Kingdom instead of from the U.S.A. Road communications are improving and British makers are favoured by the drop in sterling.
The import figures for Kenya and Uganda, which are published jointly and are the most important, show this tendency in a striking manner. Dealing with commercial vehicles only, in 1929 Canada supplied 1,182; the U.S.A., 250; and the U.K., 62. In 1930 the corresponding figures were :—Canada, 651; U.S.A., 259; U.K., 20. In 1931 they were :—Canada, 211; U.S.A., 79; U.K., 46. There will probably be a still greater proportion of British vehicles this year.
In Tanganyika, for 1929, the figures were :—Canada, 322; U.S.A., 405; U.K., 32; for 1930 they were :— Canada, 323; U.S.A., 187; U.K., 34; and for 1931 :—Canada, 115; U.S.A., 22; U.K., 21.
One of the most important factors is the increase in the wholesale price of sisal, which is a very important product.
One of the difficulties facing road transport in South Africa is a complicated system of registration for hauliers, institutn1 under the Motor Transporta
tion Act, and brought forward with the object of helping the railways.
South Africa's Market Improving.
Whilst Southern Rhodesia is linked with sterling, South Africa is still on the gold standard, and it is considered that this will help our trade. The feeling is also turning in favour of British goods, and many of the municipalities give a cash preference in certain cases to British goods, although there is no general preference. The"tariff is 20 per cent, ad valorem, prima& 5 per cent. and surtax of 74 per cent. In respect of commercial chassis, for 1931 the figures were :—U.K., 243; U.S.A., 1,053; Canada, 407. For 1930 the figures were :—U.K., 277; U.S.A., 1,676 ; Canada, 469; and in 1929 496;
U.S.A., 5,553; Canada, 1,101. It is
noticeable that a large amount of bodybuilding is being done in the country.