MAN targets 25% of Cyprus truck market

— Euro strength not a worry, but liquidity issues are

 

MAN hopes to raise its share of the Cyprus trucks market from a current negligible share to 20-25% within the next five years, Martin Scharrer, CEO of MAN Nutzfahrzeuge told the Financial Mirror.

“In every market where we operate, we strive to have at least 5% market share, but in smaller countries like Cyprus, our target, which is feasible, is to reach 20-25% within the first five years of full operations,” Scharrer said.

He was in Cyprus to sign a representation agreement with Man Sales & Services (Cyprus) Ltd, a subsidiary of Pharmakas Quarries Ltd, itself an associate company of A. Panayides Contracting Pcl (APC).

“We are delighted to have APC as our business associates in Cyprus,” said Scharrer, adding that ΜΑΝ Nutzfahrzeuge is one of the top manufacturers of commercial vehicles in Europe.

Vangelis Georgiou, Executive Vice Chairman of A. Panayides Contracting, said he was happy that the German Group MAN confided its reputation in Man Sales & Services (Cyprus) Ltd., and added: “This is a new challenge of business activity for us. The success of the APC Group in Greece, Romania and Cyprus so far are a guarantee for is to achieve our new goals”.

“This optimism is based on our modern plants, the provision of full customer service, the quality of our award-winning products, and our ability to promote the quality products to the market,” Georgiou said.
Marinos Christodoulides, Finance Director of the Group and member of the board of Man Sales & Services said that initially, the all-new MAN TGX V truck with a V8 engine producing 680 hp, voted as the best truck in Europe, will be available in the local market.

— Euro strength not a worry

Scharrer told the Financial Mirror that the recent strength of the euro is not a cause for concern for MAN Nutzfahrzeuge, since about 70-75% of sales are achieved within the bloc with little reliance on the US market, which is fast sliding into a recession.

“I’m more worried about the liquidity issues now affecting bank lending, which will indirectly affect sales, since most of our customers rely on loans to finance the purchase of their trucks and buses.”

Nevertheless, with global trade likely to maintain a satisfactory rate of increase, Scharrer is confident that the transport sector will register above-average growth, allowing MAN to maintain its healthy growth in sales and profits.

Environmental concerns and tougher EU rules on carbon emissions are seen as positive for the MAN Group, since it will force companies to shift to the purchase of new and efficient trucks.

“For example, in Cyprus, second-hand imports from the UK make up a significant share of the market, which we believe will change as companies decide to buy fuel efficient new trucks now that we are offering top quality service through our associates here,” said Scharrer.

Based in Munich, Germany, the MAN Nutzfahrzeuge Group is the largest company in the MAN Group and one of the leading international providers of commercial vehicles and transport solutions. In fiscal year 2006 the company, with some 36,000 employees, generated a turnover of EUR 8.7 bln with sales of just under 80,000 trucks and over 7,300 buses and bus chassis. Compared with the previous year, the operating result rose by EUR 201 mln to a record value of EUR 670 mln.