MAN ‘exceptionally ambitious’ for new range

MAN has come out swinging with its overhauled range of trucks, with the German brand’s local importer and distributor, Penske Australia, setting its sights on doubling MAN’s market share in Australia by 2025, and then some.

The aggressive target was outlined by Penske Australia’s Executive General Manager, On-Highway, Craig Lee, at the official launch of the new MAN range at Brisbane’s RACQ Mobility Centre earlier this week, as the brand showcased its new product to the nation’s trucking media, customers and dealers.

“We’re going to more than double our market share – that’s our goal,” said Mr Lee, “We’re going to sell everything we can get our hands on.”

The new range sees a wide array of updates and improvements made across MAN's TGX, TGS, TGM and TGL families, with changes spanning a comprehensive cab overhaul, a new electronics architecture, improved aerodynamics, and an array of new driver comfort, convenience and safety features, among others.

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Mr Lee said the benefits of the new product, and Penske’s commitment to capitalising on the generational change, presented a huge opportunity for MAN in this part of the world.

“Our aspiration is that we will double our market share by 2025,” he said.

“We make no secret that we are exceptionally ambitious with this truck. Our relationship with MAN has never been as good as it is today. Because we’re part of Volkswagen Group, Penske Automotive Group and Volkswagen Group globally have very strong relationships.”

Mr Lee said that MAN’s level of involvement with the Australian market had “probably been the missing piece” over the years, but that with MAN’s renewed commitment to Australia, and with Penske’s commitment to MAN, he saw no reason to remain circumspect regarding the new generation’s potential.

“So with their [MAN’s] commitment and our commitment, we can see no reason why we won’t double our market share,” he said.

“The new truck is fantastic, and the dealer footprint is great, so why can’t we succeed?”

When asked which rivals MAN was targeting with its new generation of medium and heavy-duty trucks, Mr Lee didn’t hesitate.

“Mercedes and Scania,” he said. “Mercedes-Benz and Scania are the guys that we’re chasing.”

The Euro cab-over rivals should prove challenging quarry indeed for MAN – to the end of June this year, Scania was sitting in fourth place in the heavy-duty market, with 483 new registrations (TIC T-Mark data), while Mercedes-Benz was in seventh, with 377.

In contrast, MAN had recorded 166 new registrations, placing it in 13th place on the sales ladder, though that figure does represent growth of 62.7 per cent on the previous corresponding period. Both Scania’s and Mercedes-Benz’s sales fell compared to those recorded in the first half of 2021, by 16.1% and 36.7% respectively.

As for market share, MAN held a 1% slice of the overall Australian truck and van market at the end of June, while Scania held 2.3% and Mercedes-Benz held 3.2%. In the heavy-duty market, market share was 2.4% for MAN, versus 7.0% for Scania and 5.5% for Mercedes-Benz.

However, supply is the pressing issue as the globe continues to grapple with the fall-out from the COVID-19 pandemic, with supply chain disruption, the labour squeeze, a semi-conductor shortage and the ramifications of war in Ukraine all contributing to unprecedented economic and business conditions.

While still affected, MAN is better positioned than most in this regard, said Mr Lee, who told Trucksales that Penske Australia has secured 400 next-gen trucks for 2022, with more to follow.

“The majority of those are the 13-litre and 15-litre prime movers – that’s the vast majority,” he said.

“And we sell a lot of 4WD product so there’s a smattering of 4WD in there as well. And then next year, we’ve got well in excess of 600 [trucks]. You know, that number moves around a bit; the global supply chain is a bit uncertain even in MAN.”

Mr Lee said that despite the challenges, MAN is weathering the volatility well.

“Everybody has been affected; the whole global supply chain has been affected, and we are no less affected,” he said.

“But when I say no less affected, we’ve managed it extremely well. We continue to work with MAN really closely on supply. At the moment our supply chain, our supply portfolios are full. MAN has given us really good treatment on build slots, so we’re confident that supply is rolling. So as we speak today, we’ve got really good vision on what’s getting built, what’s on the water, what’s on its way to the port, but everyone’s impacted by shipping.”

When asked how long a customer would have to wait for their trucks if they ordered some new-generation models today, Mr Lee said the delivery time wouldn’t be outlandishly long, by current standards.

“We would be in supply by the end of the year, obviously depending on the exact model,” he said.

“The product that we have on the water is 50 to 60 per cent sold, so we’ve still got a lot of capacity, but importantly right behind that we’ve got a whole heap more. So we are really confident with our supply position, or at least as much as you can be – if Russia has another go at Kyiv [Ukraine], then anybody is going to be in trouble.

“But I’m really confident with where we are positioned, and confident enough that we’re launching with really bold plans.”