Business or pleasure?

The sector is one of the healthiest in the new vehicle market having tripled in size since 1996 to 33,200 units a year, according to figures from the Society of Motor Manufacturers and Traders. The same figures show trade has been strong in the year to date with sales currently 10 per cent ahead of the same period last year. The dynamics in the market are quite different from the new car sector with Mitsubishi and Isuzu dealers punching above their weight as they compete for sales against Ford, Toyota and Nissan. The market leader is Mitsubishi, whose L200 was the top selling pick-up in 2004 and was the brand's best seller for the first three months of 2005, clocking up sales that almost equalled the combined figure achieved by the Colt, Shogun and Shogun Sport over the same period. For the 2005 model year, the Japanese importer has introduced a face-lifted L200 line-up which saw the debut of the spec-heavy Animal Double Cab. Since it was introduced in 1998, Mitsubishi claims that the L200 has become the benchmark business/leisure crossover vehicle and one that currently commands 37 per cent of new pick-up sales in the UK. In a move likely to boost showroom traffic even more it has cut £1,000 off some L200 models until the end of June. But though Mitsubishi dominates the market, Nissan has recently upped the ante with a new Navara model aimed at the work and play market in the pick-up sector. Adopted as the official vehicle for the California Lifeguard Agency — the real Baywatch — the new Navara with its class-leading 174 PS diesel engine and top speed of over 100 mph, exemplifies how some manufacturers are tapping into this lifestyle-business sector. Last year, Nissan's pick-up range in Britain achieved registrations of 7,629 — just 90 units ahead of the Ford Ranger and enough to allow it to leapfrog to second place from fourth, with both brands taking 22 per cent of the segment. Although Nissan's own data in 1998 placed its share of the segment at around only seven per cent, it now predicts that it will end the year at around 25 per cent. Last year it managed market share growth of almost six per cent; twice the percentage achieved by the Ford Ranger, while Mitsubishi, it claimed, dipped by one per cent. “The battle in Britain is now between Nissan and Mitsubishi,” said Oliver Paturet, Nissan general manager, product planning for upper-medium and executive vehicles. “The 4x4 pick-up segment has expanded greatly in Europe because of the growth of the double cab models,” he told Motor Trader. “The customer profile of the pick-up buyer is first and foremost small, one-man band businesses who either drive a van or a pick-up. But the younger drivers are more image conscious and are more likely to choose a pick-up over a van.” He said that pick-up sales have been fuelled by the increasing number of people participating in sports such as sailing, hang gliding, or riding a quad bike and who need a vehicle that can tow or accommodate their gear. “The first and last group tend to merge into one category,” said Paturet. “With the outgoing Nissan pick-up, we found that adding more features and increasing the power of the engine and making the vehicle more expensive actually stimulated sales, because we were giving people more of what they wanted. “The three most import factors for the customer are power, practicality and value for money.” A Ford spokeswoman said that its Ranger model is holding its own in an increasingly competitive market. “We achieved almost identical sales to Nissan last year to capture a 22 per cent share of the segment, compared with registrations of 5,400 in 2003 and a 19 per cent share,” she said. Ford Ranger and Nissan pick-up sales for the first five months of the year are neck and neck at around 2,900. But while businesses accounted for a third of Ranger sales, about 80 per cent of the Nissans were bought by retail customers. This increased competition is reflected in tactical pricing programmes being employed by some manufacturers. This month Ford announced that Ranger Double Cab and Super Cab models for delivery from late July will be up to £1,300 cheaper, while other variants will feature more extra-value features as standard. Jon Fisher, Ford commercial vehicle marketing manager said: “The pick-up sector grew by 24 per cent last year, driven by demand for 4x4 double cab vehicles. Last year we sold 7,539 Rangers, an increase of 40 per cent.” Another strong contender is Toyota whose Hilux model sold 3,620 last year compared with 2,459 in 2000. Interestingly, the model mix has effectively reversed over this period, with registrations of 4WD Double Cabs growing to 2,658 from 715 in 2000, while 2WD and 4WD Single cab have fallen to 241 from 487 and 721 from 1,257, respectively. Toyota launched its sixth-generation Hilux at the recent Barcelona Motor Show, with dealer sales in the UK expected to begin in October. It features all-new suspension for improved ride and is longer and wider than the current model. Isuzu whose pick-up sales of just over 2,000 units last year earned it fifth place is also offering substantial discounts of over £2,000 with its Rodeo vehicle. But national franchise development manager Terry Leach claimed that dealers are being attracted to the brand, which has exited the 4X4 car sector, because of its pick-up success, with 25 new outlets appointed last year. “We are well on the way to achieving a strong geographical spread, making it as convenient as possible for pick-up owners to have their vehicle serviced and for potential customers to take a test drive,” he said. “The praise heaped on the Rodeo by the media is also contributing to our success in attracting high-calibre dealers.” With all this activity in the sector Nissan is predicting that it will continue to grow despite wider expectations of a slow down in the car market. The brand forecast total pick-up sales of 38,000 units by the end of the year rising to 42,000 in 2006. Increasingly pick-ups are a desirable part of the model mix for the handful of brands that offer them in their product line-ups.