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Sales Chances

1st January 1937, Page 75
1st January 1937
Page 75
Page 75, 1st January 1937 — Sales Chances
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in Empire Markets A Compendium of Figures and Facts Concerning the Commercial Vehicle Markets in the Leading Countries Comprising the British Empire Overseas. For Much of This Information We Are Indebted to the Department of Over

seas Trade

CANADIAN OPERATORS MUST HAVE SERVICE FACILITIES.

CANADIAN GOVERNMENT figures recently issued, covering the sales of new lorries and buses but not covering the trade in used vehicles, show that, for the 10 months ended October last, the number of units handled was 18,799, as against 16,563 in the same period in the previous year, and 10,766 in 1934, the retail value of the vehicles being approximately 19i million, 164 million and 11 million dollars respectively.

This is a satisfactory showing, as it is indicative of improved conditions in the Dominion, although it is to be noted . that in October the sale of commercial vehicles fell below the September level. The best markets are naturally the provinces. of Quebec and Ontario, not only because they are the principal industrial areas in the Dominion, but also on account of the density of population (64 'millions out of a total of 11 millions throughout the country). British Columbia than follows, whilst the three prairie provinces—mainly agricultural—come between Ontario and Quebec. The figures for the 10 months of this year are as follow:—

Retail Value Units. in Dollars.

Maritime Provinces (a) ... 2,478 2,452,509 Quebec ... ... 3,445 3,786,788 Ontario ... ... 7,241 7,322,640 Prairie Provinces (hi ... 3,813 3,634,025 British Columbia ... ... 1,822 2,076,963 18,799 19,272,925 (a) = Nova Scotia, New Brunswick, and Prince Edward Island.

(hi = Manitoba, Saskatchewan and Alberta.

As in past years, Canadian builders of motor trucks have dominated the domestic market. In 1935 37,315 vehicles were made and valued at $19,803,771, of which 16,738, valued at just over $6 million, were exported. Imports were only 978 vehicles, valued at $789,609, and mainly came from the U.S.A., whose share of the trade was worth just over $700,000. United Kingdom makers supplied only 84 units, valued at $82,328.

Of the lorries produced in 1935, those with a capacity of between 14 and 2 tons were in greatest demand, followed by those of 15 cwt. and less, and then by those of 2 tons and less than 24 tons.

Commercial vehicles imported into Canada from the U.K. arc free of duty, 'whilst those coming from the U.S.A. are assessed for duty and an excise tax, . the aggregate of which amounts to about 21% ad valorem. Nevertheless the Canadian market is an extremely difficult one for British firms to enter, owing partly to the mentality of the Canadian public in respect of motor .vehicles in general' being largely an American one.

Apart from that consideration, there is always the question of "service,"

and Canadian buyers, who have been accustomed for years to service in .Canada or from just over the border at very short notice, naturally demand it in their own country from United Kingdom suppliers.

Any British firm interested in the Canadian market for commercial vehicles, and considering the project of establishing trade relations, would be well advised in the first place to consult H.M. Senior Trade Commissioner in Canada, 1111, Beaver Hall Hill, Montreal, who, with his colleagues at Toronto, Winnipeg and Vancouver, will be pleased to give them all assistance possible A GROWING MARKET IN SOUTH AFRICA.

IN the Union of South Africa the U.S.A. is at present obtaining most of the commercial-vehicle business. In 1935 lorry, van and bus chassis totalled 6,783, valued at 4932,994. Of these the United Kingdom supplied only 640, representing £260,003; U.S.A., 9,513, valued at £472,999; and Canada, 1,549, valued at 4141,227. Complete vehicles totalled 954, of which 243 (4108,280) came from the U.K., 576 from the U.S.A. (£69,671) and 120 from Canada (48,388).

During 1935 the number of buses, vans and lorries licensed totalled 28,938, representing a percentage increase over 1034 of 17.88, so that the market is a growing one. Of these, 1,259 vans and lorries were in respect of the Cape of Good Hope Province, 3,295 Natal Province, 11,045 Transvaal, where the gold mines are situated, and 1,315 Orange: Free State. As regards buses, the Cape of Good Hope has 464, Natal 230, the Transvaal 464, and the Orange Free State 66.

From January to June, 1936, the imports of lorries and vans tolled 936, valued at 4112,897. The hulk, actually 476, entered through Port Elizabeth, 156 through Capetown, 171 through East London, and 126 via Durban. The total represents a big increase, as the number for 1035 for the same period was only 422, valued at 475,957.

The absorption capacity of a country depends considerably upon the constituents of the population, and, in this respect, South Africa has approximately 2,000,000 Europeans, 6,500,000 natives, 215,000 Asiatics and 750,000 of other races, totalling just under 9,500,000.

There is a central transportation board, with local boards for each proclaimed area, and every carrier has to hold a certificate, except where the population .is not more than 20,000 and the carrier operates within the jurisdiction of a municipal council, What we may term the C-type licenses: is limited to certain areas, except for the transport of samples.

Regarding roads, 80,715 miles are controlled by provincial administration boards. In February, 1936, the National Road Board submitted a five-years' programme of work, which it has recommended for the approval of the Minister of the Interior,. If approved, 5,396 miles will be reconstructed and repaired as national roads.

In order to encourage the sale of more British vehicles, it would seem advisable, here, to institute a preferential tariff.

AUSTRALIAN POSITION STEADILY IMPROVING.

COMMERCIAL vehicles are not separately distinguished in the Australian trade returns, being included with private cars. In the 10 months ended October 31, 1936, however, the United Kingdom exported to Australia 3,323 commercial vehicles valued at 4435,385, as compared with 3,097 of a value of 4389.896 in the corresponding period of 1935, and 3,322 of a value of 4385,332 in 1934.

The proportion which imports • from the United Kingdom bear to total imports may be gathered from the fact that of 9,636 registrations of commercial vehicles in the half year ended June, 1936, 1,443 (or 15%) were of United Kingdom vehicles. The bulk of the remainder came from U.S.A.. and Canada. This compares with a U.K. percentage of 16.7 in the half year ended December, 1935.

The measures recently taken by the Commonwealth Government limiting imports of motor vehicles in the year ending April 30, 1937, from suppliers other than the United Kingdom, to the figures for the year ending April 30, 1936, should be advantageous to U.K. exporters.

With regard to tractors, the U.S.A. still dominates the market for the caterpillar type, of which in the year ended June 30, 1935, the United Kingdom supplied only two out of a total of 473. Imports of other types in the


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