Innovation, resilience crucial for growing vehicle sales
Supply constraints remain
Anton Westraadt, managing director of Pupkewitz Motors, discusses the state of vehicle sales in Namibia.
Vehicle sales over the 12-month period to March this year have shown an increase of 20%, but supply constraints are still a problem.
According to Anton Westraadt, managing director of Pupkewitz Motors: “The growth we have seen should be viewed in the context of supply constraints which are still prevalent.”
Westraadt points out that the motor industry has seen an abnormal increase in used vehicle pricing. He attributes this increase to a short supply of new vehicles, which has increased demand for used vehicles, and consequently pushed up the prices.
“This trend we have seen is in line with international patterns in used vehicles,” Westraadt said. “However, as the supply of new vehicles has started to recover, demand for used vehicles has seen an adjustment, resulting in the pricing of used vehicles normalising.”
Other trends
The other trend he mentions is that the industry is witnessing customers driving their vehicles for longer periods, and not replacing them as often as they used to.
He says this pattern is driven not only by the increase in new vehicle pricing, but also by consumer spending being under pressure and consumers financing vehicles over extended periods, with the result that the consumer takes longer to achieve sufficient equity in their vehicle to be prepared to buy a new one.
The other trend that Westraadt mentions is an increase in the number of brands and models available to the consumer, resulting in intense competition among automotive brands.
When speaking about factors that are expected to impact the growth of the Namibian automotive industry over the next five years, he notes that vehicle sales are very often seen as an indicator of economic growth of a market or country.
“In the short to medium term we foresee lower growth, more in line with Namibia’s GDP growth. Fast forward five to ten years, and once the economy starts seeing the benefits of growth in the economy as a result of oil discoveries, green hydrogen, and other related sources of growth, one is likely to see double-digit growth in vehicle sales.”
Tech advancements
Commenting on technological advancements and the future of the automotive industry in Namibia, Westraadt points out that for every ten experts in this field, there are probably twenty differing opinions.
“We have recently seen a sharp increase in hybrid vehicles, driven by the sharp increase in fuel prices, since hybrids are typically more economical when it comes to fuel consumption.
“There has been an increase in the launch of fully electric vehicles (EVs) in the South African market, with a number of models sold in Namibia as well, but with the challenges of steady electricity supply, and our vast distances we travel, full EVs may not be the answer to our market.”
Challenges
One of the biggest challenges the motor industry faces is a fight for talent.
Over the years, for its part, Pupkewitz Motors has played a pivotal part in skills development relevant to the motor industry. This has been through their automotive technician training (apprenticeships), sales trainee programmes and graduate trainee mentorship.
“The industry offers great opportunities, not only for a job, but for a rewarding career, to individuals who are passionate about the industry, who are eager to learn, and willing to work hard to achieve organisational and personal goals,” says Westraadt.
Regarding Pupkewitz Motors positioning itself to capitalise on the anticipated growth opportunities in the Namibian automotive industry, he says it is important for them to stay connected to their customers, to understand changing needs of customers, and to ensure that Pupkewitz Motors remain relevant in offering hassle-free mobility solutions to customers.
In this regard, he says Pupkewitz Motors will continue to enhance customer centricity and efficient processes, “by understanding the customer journey, personalising experiences, investing in digital platforms, streamlining processes, and actively seeking customer feedback. Through this we will continue to build long-lasting relationships with our customers.”
Key lessons
On a personal level, Westraadt says as a leader in the automotive industry, he has learnt several key lessons that have helped him steer his team and organisation towards success.
Additionally, he says while there are generic management and leadership principles that apply across industries, there are some considerations unique to the automotive industry that stand out.
The lessons he lists include focusing on employees. In the automotive industry, employees are critical to delivering an exceptional customer experience.
“As such, every single day, we need to prioritise our employees and ensure that they have the tools, training, and support they need to serve our customers effectively. By investing in our employees, we are investing in our customers.”
Furthermore, Westraadt says: “In the automotive industry, we need to stay ahead of the curve and anticipate our customers' needs. This means keeping up with trends, technologies, and changing consumer preferences. By doing so, we can provide our customers with the products and services they need, when they need them, and in a way that exceeds their expectations.”
Working capital
Equally, he lists managing working capital in a capital-intensive industry as a critical consideration in the automotive industry.
“We need to strike a balance between investing in inventory to meet our customers' diverse needs, while still running a profitable business with healthy returns. This requires careful financial management and a deep understanding of our business and market dynamics.”
He adds that making decisions with precision is another important lesson he has learnt over the years.
“When it comes to decision-making in the automotive industry, it is crucial to take the time to consider all relevant facts and information carefully. However, once a decision is made, we cannot waste any time in executing it with precision. This requires strong leadership, effective communication, and a culture of accountability.”
Optimising resources
Westraadt says he has also learnt the importance of optimising human and technology resources. He adds that finding the optimal blend between human intervention and technology-driven processes is critical in the automotive industry.
“We need to leverage technology to automate and streamline processes, while still maintaining a human touch to provide personalised customer experiences. This requires a deep understanding of our customers' needs and preferences and a willingness to invest in technology and innovation.”
In summary, Westraadt says that as a leader in the automotive industry, he has learned the importance of prioritising employees, anticipating customer needs, managing working capital, making decisions with precision, and optimising human and technology resources.
“By focusing on these key considerations, we can deliver exceptional customer experiences, drive business growth, and stay ahead of the competition,” he says.
According to Anton Westraadt, managing director of Pupkewitz Motors: “The growth we have seen should be viewed in the context of supply constraints which are still prevalent.”
Westraadt points out that the motor industry has seen an abnormal increase in used vehicle pricing. He attributes this increase to a short supply of new vehicles, which has increased demand for used vehicles, and consequently pushed up the prices.
“This trend we have seen is in line with international patterns in used vehicles,” Westraadt said. “However, as the supply of new vehicles has started to recover, demand for used vehicles has seen an adjustment, resulting in the pricing of used vehicles normalising.”
Other trends
The other trend he mentions is that the industry is witnessing customers driving their vehicles for longer periods, and not replacing them as often as they used to.
He says this pattern is driven not only by the increase in new vehicle pricing, but also by consumer spending being under pressure and consumers financing vehicles over extended periods, with the result that the consumer takes longer to achieve sufficient equity in their vehicle to be prepared to buy a new one.
The other trend that Westraadt mentions is an increase in the number of brands and models available to the consumer, resulting in intense competition among automotive brands.
When speaking about factors that are expected to impact the growth of the Namibian automotive industry over the next five years, he notes that vehicle sales are very often seen as an indicator of economic growth of a market or country.
“In the short to medium term we foresee lower growth, more in line with Namibia’s GDP growth. Fast forward five to ten years, and once the economy starts seeing the benefits of growth in the economy as a result of oil discoveries, green hydrogen, and other related sources of growth, one is likely to see double-digit growth in vehicle sales.”
Tech advancements
Commenting on technological advancements and the future of the automotive industry in Namibia, Westraadt points out that for every ten experts in this field, there are probably twenty differing opinions.
“We have recently seen a sharp increase in hybrid vehicles, driven by the sharp increase in fuel prices, since hybrids are typically more economical when it comes to fuel consumption.
“There has been an increase in the launch of fully electric vehicles (EVs) in the South African market, with a number of models sold in Namibia as well, but with the challenges of steady electricity supply, and our vast distances we travel, full EVs may not be the answer to our market.”
Challenges
One of the biggest challenges the motor industry faces is a fight for talent.
Over the years, for its part, Pupkewitz Motors has played a pivotal part in skills development relevant to the motor industry. This has been through their automotive technician training (apprenticeships), sales trainee programmes and graduate trainee mentorship.
“The industry offers great opportunities, not only for a job, but for a rewarding career, to individuals who are passionate about the industry, who are eager to learn, and willing to work hard to achieve organisational and personal goals,” says Westraadt.
Regarding Pupkewitz Motors positioning itself to capitalise on the anticipated growth opportunities in the Namibian automotive industry, he says it is important for them to stay connected to their customers, to understand changing needs of customers, and to ensure that Pupkewitz Motors remain relevant in offering hassle-free mobility solutions to customers.
In this regard, he says Pupkewitz Motors will continue to enhance customer centricity and efficient processes, “by understanding the customer journey, personalising experiences, investing in digital platforms, streamlining processes, and actively seeking customer feedback. Through this we will continue to build long-lasting relationships with our customers.”
Key lessons
On a personal level, Westraadt says as a leader in the automotive industry, he has learnt several key lessons that have helped him steer his team and organisation towards success.
Additionally, he says while there are generic management and leadership principles that apply across industries, there are some considerations unique to the automotive industry that stand out.
The lessons he lists include focusing on employees. In the automotive industry, employees are critical to delivering an exceptional customer experience.
“As such, every single day, we need to prioritise our employees and ensure that they have the tools, training, and support they need to serve our customers effectively. By investing in our employees, we are investing in our customers.”
Furthermore, Westraadt says: “In the automotive industry, we need to stay ahead of the curve and anticipate our customers' needs. This means keeping up with trends, technologies, and changing consumer preferences. By doing so, we can provide our customers with the products and services they need, when they need them, and in a way that exceeds their expectations.”
Working capital
Equally, he lists managing working capital in a capital-intensive industry as a critical consideration in the automotive industry.
“We need to strike a balance between investing in inventory to meet our customers' diverse needs, while still running a profitable business with healthy returns. This requires careful financial management and a deep understanding of our business and market dynamics.”
He adds that making decisions with precision is another important lesson he has learnt over the years.
“When it comes to decision-making in the automotive industry, it is crucial to take the time to consider all relevant facts and information carefully. However, once a decision is made, we cannot waste any time in executing it with precision. This requires strong leadership, effective communication, and a culture of accountability.”
Optimising resources
Westraadt says he has also learnt the importance of optimising human and technology resources. He adds that finding the optimal blend between human intervention and technology-driven processes is critical in the automotive industry.
“We need to leverage technology to automate and streamline processes, while still maintaining a human touch to provide personalised customer experiences. This requires a deep understanding of our customers' needs and preferences and a willingness to invest in technology and innovation.”
In summary, Westraadt says that as a leader in the automotive industry, he has learned the importance of prioritising employees, anticipating customer needs, managing working capital, making decisions with precision, and optimising human and technology resources.
“By focusing on these key considerations, we can deliver exceptional customer experiences, drive business growth, and stay ahead of the competition,” he says.
Comments
Namibian Sun
No comments have been left on this article