South Africa’s second-hand car market is gathering steam, especially with the likes of online startups like CarZar that offer a 30 minute sales service and data-based pricing.
Digital disruption is rapidly gathering steam in South Africa’s second-hand car industry, with tech start-up CarZar offering an online-only model, a 30 minute sales service and data-based pricing. The car industry is one in a long line of industries which have been vigorously shaken up by online business models with lean set-ups, low costs, no middlemen and fast turnaround times.
Fernando Azevedo Pinheiro, joint MD of CarZar, says that with internet connectivity in South African constantly on the rise, more and more consumers are utilising services provided online or through mobile apps. This opens a series of opportunities in different industries which have not innovated much in the last few decades. With the tough economy, the price gap between new and used cars is widening, making second hand cars a very attractive option as new cars are now out of reach for many people.
“These influences combined mean that the prestige of owning an expensive car is slowly being replaced by a more utilitarian attitude towards cars. The auto-trade market as we know it today will look fundamentally different in the next five to ten years, in our view. The demand for second-hand cars is, therefore, on the rise.”
Michael Muller, joint MD, says disruption forces traditional businesses to reinvent themselves to compete with nimble startups. “In South Africa, the taxi, hospitality, media, property and electronics industry have all been turned upside down by online entrants. Now it is the turn of cars.”
He says a number of factors have come together to create a ‘perfect storm’ of disruption in the auto-trade market. “The way we use cars is changing, fundamentally and rapidly. The Uber phenomenon is showing no sign of letting up and car sharing apps are on the rise. Major car manufacturers are looking into models which allow people to borrow rather than own cars.
CarZar is funded by Cape Town-based venture capital firm, Silvertree Capital. “Ultimately our model is all about helping consumers sell their car as quickly and easily as possible. We offer online evaluation in 30 seconds. The price is decided on a data-based algorithm and if the quote is satisfactory acceptable, you book a physical assessment slot, online. A valuator visits you and, if the offer is suitable, the deal is done – paperwork and all – in less than 30 minutes. The money is in the bank that same day!”
Fleet management in 360
An on-board dual camera system from global fleet management vehicle recovery and insurance telematics provider, Cartrack, reduces the costs of managing vehicle fleets, while creating new ways to motivate drivers and improve their on-the-road performance.
Historically, commercial drivers within fleets have been far removed from active management and oversight, with limited tools available in helping fleet owners understand how their drivers actually behave on the road. This lack of visual tracking ability has seen fleet managers struggle to achieve meaningful driver skills development, while also leaving companies vulnerable to poor operational performance and financial losses resulting from accidents.
Cartrack’s Drive Vision system is dramatically changing this status quo.
Drive Vision is an on-board dual camera system that records video footage with a 120-degree exterior view of the road ahead, and a 160-degree view inside the vehicle cab. Not only can fleet managers actively monitor all the footage that they wish, the system also records specific events such as speeding, harsh braking or an unforeseen action from a third-party.
Drive Vision’s video is continuously captured and then made available to users in two ways. The footage is either buffered in the unit’s memory card for up to five days, and selected time slots can be downloaded by the user via a web interface. Alternatively, footage is also automatically downloaded to the system when specific events occur, such as speeding or a collision. The captured footage is stored at a web address and is immediately accessible to the client at any time. In addition, the data centre’s driver exception reporting mechanism can review the footage against a client’s pre-determined driver behaviour stipulations, creating a balanced and flexible driver performance assessment tool.
Cartrack CEO, Andre Ittmann, notes why Drive Vision is so useful for companies.
“There are two key strategic benefits to the technology. Firstly, the company has a clear visual record of events in the case of an accident or legal dispute. Achieving this kind of detailed view hasn’t been possible before, and it can dramatically reduce the costs around incidents and accidents, on an ongoing basis. Secondly, Drive Vision is a highly functional, event-based coaching system. It therefore allows fleet managers to develop a culture that rewards excellent or improved performance, while also giving them the power to actively close skills gaps. “
Ittmann also notes that fleet video footage allows the company to monitor and manage aspects of its service and market performance, including the driver’s ability to access a work site, thereby ensuring timeous arrivals at designated locations and the ability to oversee passenger count and conduct.
Ittmann concludes that Drive Vision offers untold long-term advantages for companies.
“Beyond simply gaining a more efficient means to discipline errant drivers, Drive Vision also empowers fleet managers to proactively implement measures that will result in long-term benefits for their company. Ultimately, the company can also reduce costs related to driver mismanagement while simultaneously improving a driver’s skills and their performance on the road.”
Porsche names e-car
Series production of the first purely electric Porsche is set to begin next year.
In preparation, the vehicle has now been given its official name: The “Mission E” concept study, the name currently used to describe Porsche’s complete electric offering, will be known as the Taycan. The name can be roughly translated as “lively young horse”, referencing the imagery at the heart of the Porsche crest, which has featured a leaping steed since 1952.
“Our new electric sports car is strong and dependable; it’s a vehicle that can consistently cover long distances and that epitomises freedom”, says Oliver Blume, Chairman of the Executive Board of Porsche AG. The oriental name also signifies the launch of the first electric sports car with the soul of a Porsche. Porsche announced the name for its first purely electric series as part of the “70 years of sports cars” ceremony.
Two permanently excited synchronous motors (PSM) with a system output of over 600 hp (440 kW) accelerate the electric sports car to 100 km/h in well under 3.5 seconds and to 200 km/h in under twelve seconds. This performance is in addition to a continuous power level that is unprecedented among electric vehicles: Multiple jump starts are possible in succession without loss of performance, and the vehicle’s maximum range is over 500 km in accordance with the NEDC.
Names with meaning
At Porsche, the vehicle names generally have a concrete connection with the corresponding model and its characteristics: The name Boxster describes the combination of the boxer engine and roadster design; Cayenne denotes fieriness, the Cayman is incisive and agile, and the Panamera offers more than a standard Gran Turismo, which is what allowed it to win the Carrera Panamericana long-distance race. The name Macan is derived from the Indonesian word for tiger, with connotations of suppleness, power, fascination and dynamics.
Future investment doubled
Porsche plans to invest more than six billion euro in electromobility by 2022, doubling the expenditure that the company had originally planned. Of the additional three billion euro, some 500 million euro will be used for the development of Taycan variants and derivatives, around one billion euro for electrification and hybridisation of the existing product range, several hundred million for the expansion of production sites, plus around 700 million euro for new technologies, charging infrastructure and smart mobility.
Extensive modifications at tHQ
At the Porsche headquarters in Zuffenhausen, a new paint shop, dedicated assembly area for the Taycan and a conveyor bridge for transporting the painted bodies and drive units to the final assembly area are currently being constructed. The existing engine plant is being expanded to manufacture electric drives and the body shop will also be developed. Investment is also planned for the Weissach Development Centre. Production of the Taycan is creating around 1,200 new jobs in Zuffenhausen alone.