Juanita Pienaar spoke with Philip Kalil-Zackey, Head of Truck Sales & Product at MAN Truck & Bus South Africa; Itumeleng Segage, General Manager of Hino Sales; and Olaf Petersen, Vice President: Sales & Marketing at Daimler Truck Southern Africa, to unpack the shifting landscape of heavy commercial vehicles in the country.
Their combined insights paint a picture of an industry balancing rising operational strain with rapid technological advancement and a measured transition towards alternative powertrains.
Mounting pressure on operators
Across South Africa, heavy commercial vehicle operators are navigating a tightening operating environment, where costs are rising, and reliability is becoming harder to maintain.
At the core of these pressures is fuel. “Fleet operators are under mounting pressure from fuel pricing, which affects operating costs of their businesses,” says Philip Kalil-Zackey of MAN. Compounding this are quality concerns. “Fuel quality inconsistencies increase maintenance needs such as fuel decontamination and more frequent filter replacements.”
Infrastructure adds another layer of complexity. “Poor road conditions accelerate wear and tear, impacting uptime and repair costs,” he explains, highlighting a challenge echoed across the sector.
Hino’s Itumeleng Segage expands on the breadth of these issues. “The pressure on operators is coming from several places at once,” he says. “Fuel remains one of the biggest cost drivers, and diesel increased again in March 2026, which immediately squeezes margins.”
Operational risk is also increasing. “Operators are dealing with cargo hijackings and theft, more complex criminal tactics, and ongoing admin and regulatory hurdles around licensing, permits, and enforcement,” Segage notes. Infrastructure, once again, remains a critical concern. “Road deterioration, congestion, and broader freight logistics bottlenecks all raise operating costs and reduce reliability.”
From Daimler Truck Southern Africa’s perspective, these pressures are influencing buying behaviour. “We saw the HDT market decline begin in 2024, with many customers delaying fleet renewals as economic pressures intensified,” says Olaf Petersen.
This shift has had broader consequences. “Lower-priced new entrants gained traction, disrupting not only the new-truck segment but also reshaping the used-truck market,” he explains. “This shift has fundamentally altered the competitive landscape and accelerated price pressure across the industry.”
Petersen believes adaptation will be key moving forward. “The biggest challenge for 2026 will be to reset and fully adapt to these new market dynamics.”
Technology driving efficiency
While external pressures mount, innovation in the HCV sector continues to accelerate, with a clear emphasis on efficiency, safety, and connectivity.
At Daimler Truck Southern Africa, these developments are framed within a broader strategic goal. “The main trends in the commercial vehicle market always all ladder back to reducing Total Cost of Ownership and driving long-term sustainability,” Petersen explains.
This includes “cleaner, more efficient engines with lower fuel consumption and maintenance costs” and “advanced telematics that enhance fleet visibility and reduce downtime”. He also highlights “increasingly connected and digital fleet tools that optimise routing and servicing” alongside “the early adoption of automation and Advanced Driver Assistance Systems to improve safety and operational efficiency.”
MAN’s latest developments also reflect this trajectory. “Vehicles themselves are becoming more intelligent with more driver and safety assistance systems to assist with safety and vehicle performance,” says Kalil-Zackey.
The recently launched TGX 26.520 exemplifies this shift. “This vehicle gives more uninterrupted torque at lower RPMs,” he explains. “The new driveline gives operators significant fuel savings through the engine’s improved thermal efficiencies and lighter weight axles.”
Digital intelligence is playing a growing role. “EfficientCruise uses a topography-based gearshift strategy to determine the correct gear according to the predicted terrain,” he adds. “These new technologies, along with improved aerodynamics of the cab, improve the overall efficiency of the vehicle.”
Safety enhancements are equally prominent. “New safety features like EBA Plus with pedestrian detection and VSC keep cargo and road users safe.”
Hino is seeing similar trends across its customer base. “The sector is moving toward smarter, safer, and more connected trucks,” says Segage. “Telematics is becoming standard because operators want real-time visibility on fuel use, driver behaviour, maintenance, and uptime.”
Advanced safety systems are becoming a key differentiator within extra heavy vehicles such as the Hino 700. “On the vehicle side, advanced driver assistance systems are becoming more important,” he notes. “Features such as a pre-collision safety system, adaptive cruise control, and lane departure warning show where the market is heading.”
Rethinking value in fleet investment
With margins under pressure, operators are becoming more discerning in how they evaluate new vehicle investments. The focus is shifting from upfront price to long-term value.
Segage emphasises the importance of aligning vehicles to operational needs. “The first question is always fitness for purpose. The truck must match the load, route, body application, and duty cycle,” he says.
From there, total cost of ownership becomes central. “Fuel consumption, service intervals, parts pricing, warranty, uptime support, and resale value all matter,” he explains. Safety technology is increasingly important. “Telematics has become a serious investment factor because it helps operators manage utilisation, maintenance, and fuel more effectively.”
Support infrastructure can ultimately determine a fleet’s success. “In South Africa, dealer support and parts availability are critical,” Segage adds. “A cheaper truck is not a better truck if it stands still.”
MAN is responding with a broadened aftersales approach. “MAN is continually expanding its parts and support ecosystem to improve uptime and manage costs,” says Kalil-Zackey.
This includes a diversified parts strategy. “Alongside OEM original components, MAN now offers remanufactured parts, locally sourced Line 360 components, and even certified used parts from dismantled trucks,” he explains. This helps operators “absorb currency volatility and supply chain disruptions.”
The reality of electrification
As global momentum builds around electric mobility, South Africa’s HCV sector is taking a pragmatic approach to adoption.
“At MAN, electric propulsion will grow, but uptake will differ by application,” says Kalil-Zackey. Diesel, he notes, remains essential. “In the short to medium term, diesel will remain dominant, especially for long-haul operations, where charging networks and vehicle range are still limiting factors.”
However, certain segments show promise. “Urban buses and local distribution fleets present strong near-term opportunities,” he says. “These vehicles typically return to a single depot, making charging infrastructure affordable.”
South Africa’s energy profile could even offer advantages. “The country’s abundant daytime solar potential makes depot charging both viable and cost efficient.”
From Daimler Truck Southern Africa’s perspective, electrification is inevitable but dependent on collaboration. “Battery-electric vehicles will play an important and growing role in the future commercial vehicle landscape,” says Petersen.
Yet, he cautions against oversimplification. “Electric trucks are not a single, universal solution for every application.” Their success depends on broader system readiness. “The successful introduction of electric heavy vehicles depends heavily on the development of suitable charging infrastructure, energy availability, and grid stability.”
Crucially, this is not an isolated effort. “It requires coordinated effort across OEMs, policymakers, energy providers, fleet operators, and industry associations,” Petersen adds.
Hino shares a similarly measured outlook. “It is realistic in some applications, but not yet across the board,” says Segage. Electric trucks are currently best suited to “urban, depot-based and predictable route operations”.
Barriers remain significant. “Electricity constraints, policy and regulatory uncertainty, limited availability of fit-for-purpose products, high upfront pricing, and even weight and length regulations” all slow adoption. As a result, “the transition is happening, but it will be gradual and application specific rather than a sudden full market shift.”
Building the road ahead
For the transition to alternative powertrains to succeed, structural enablers must fall into place.
Policy reform is a priority. “The most critical development needed is faster policy progression, especially around fuel standards and new emissions regulations,” says Kalil-Zackey. With cleaner fuels expected from 2027, South Africa could “realistically adopt Euro 5 or Euro 6 technology without major barriers.”
Infrastructure investment is equally vital. “Significant investment in charging infrastructure, especially along long-distance corridors, is essential,” he notes.
There is also a broader call to support local industry. “A more level competitive playing field, prioritising locally produced vehicles for public-sector procurement, would help ensure OEMs can continue investing in advancing technology and more R&D for the local market.”
Petersen reinforces the importance of collective action. “Unlocking the potential of battery-electric trucks will demand collaboration, investment, and long-term planning across all stakeholders,” he says.
A sector defined by adaptation
South Africa’s heavy commercial vehicle sector is undergoing a period of recalibration. Operators are contending with rising costs, infrastructure decline, and evolving risks, while OEMs continue to push the boundaries of efficiency, safety, and connectivity.
At the same time, the path towards electrification is becoming clearer, albeit slower and more nuanced than in other markets.
What emerges is an industry defined not by disruption alone, but by adaptation. Success will hinge on the ability to balance immediate operational realities with long-term strategic shifts, ensuring that every investment, whether in diesel or electric, delivers measurable value in an increasingly complex landscape.
