Exports Will Be Key As Rail Freight Growth Poses Risk To Truck Market

The South African unit of Japanese truck maker UD Trucks has highlighted the risk of rail freight growth to heavy truck sales, which enjoyed growth of 35% year-on-year (y-o-y) to 26,149 units in 2011. This fits the view that BMI's Freight Transport team have put forward, that projects such as Toyota Motor's move to ship its vehicles by rail rather than road provide upside risk to rail freight forecasts. BMI believes the potential impact on domestic sales could prompt other truck makers to follow UD Trucks Southern Africa (UDTSA)'s lead of targeting the wider Africa

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