Truck and bus assembler MAN Automotive South Africa is confident of “significant” demand for its electric buses (e-buses) after missing out on a major order from one of its biggest customers. MD Jan Aichinger says local commuter service operators are showing increased interest as the running-cost and environmental benefits of e-buses become clear.
This year, MAN was a leading contender to supply 120 vehicles to Golden Arrow, which already runs more than 1,000 MAN diesel buses. In the event, the order went to Chinese newcomer BYD, a growing force in the global market for electric cars and commercial vehicles. Its e-buses are imported ready-built into South Africa. MAN and other South Africa-based truck and bus companies assemble their vehicles locally: chassis kits are imported but the bus body is built in South Africa using predominately local components. They also employ local labour.
In MAN’s case, truck and bus chassis are imported through Durban for assembly in Pinetown. These then move to Olifantsfontein, near Joburg, for the addition of bodies. For buses, that means the entire passenger compartment. Almost all of that is local content. Aichinger says diesel and electric vehicles are assembled on the same Pinetown production line.
He tells the FM: “Golden Arrow told us we were in the running for the e-bus order. Of course I’m disappointed at the outcome but it’s not the end of the world. We did not bank only on this order and we are confident that we will win others.” The fact that MAN has long experience of South African market demands and that its buses have a history of durability and good resale values will stand it in good stead for the long term, he says. So will its history of aftermarket support and service.
Aichinger adds that it’s difficult for local companies to compete on price with Chinese imports. Whether they are cheaper in the long run, after taking electricity consumption and after-sales costs into account, is harder to assess. But “sometimes you have to let go and let the customer decide”.
Zambia and others are progressive when it comes to new-energy vehicles
— Jan Aichinger
MAN South Africa’s German parent is the European market leader in electric city buses, says Aichinger. He believes there is considerable potential for e-bus sales in South Africa. Unlike trucks, most of which must find battery-charging points along journey routes, commuter buses return each night to their depot, where charging points are situated. Several major towns and cities are considering switching their commuter fleets to electric. Cape Town, for example, has issued a tender for its fleet to transition in 2026.
In principle, say motor industry officials, the country’s various government levels, as well as state-owned enterprises, should try to favour companies with local content when allocating vehicle fleet business. In practice, they say regulations are ambiguous and offer loopholes to avoid doing so.
Aichinger says the e-bus market is not limited to South Africa or, indeed, to cities. He sees export potential to several Southern African countries: “Zambia and others are progressive when it comes to new-energy vehicles.”
He adds that buses are also comfortable in rural conditions. “Ours are suitable for harsh operating,” he says.
Buses represent a small percentage of South African new vehicle sales. In the first nine months of this year, 656 buses and coaches were sold, from a total new vehicle market of 401,169 cars and commercial vehicles. The good news is that the bus market is improving. At the same stage of 2023, only 508 buses and coaches had been sold.
After a dismal first six months for the new vehicle market as a whole, there are signs of an overdue upturn. The recent cut in the interest rate, however slight, should further improve consumer and corporate buying sentiment.
Aichinger says: “I forecast that the bus market in 2025 will be even better than this year.”
That market could be much stronger if South Africa had a reliable, co-ordinated public transport system, he adds. Intimidation by minibus taxi operators has discouraged bus companies from buying new vehicles, and commuters from using ones already on the road.
Ideally, South Africa needs an interlinked transport system in which trains, buses and taxis complement each other, “You can’t have competing transport systems in the same city,” he says.
The MAN brand is not limited to commuter buses. The German parent this year completed delivery of a record 4,000 luxury long-distance passenger coaches to Saudi Arabia. South Africa is also a (considerably smaller) customer for MAN coaches. Aichinger says the company plans to add an electric coach to its range in 2025, initially for the European market. “We want to be the first European manufacturer in the market,” he says.
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