Tractive Power Holdings Limited (TPH) projects to record sales volumes in excess of $43 million for their full year ending in August this year due to an anticipated increase in demand of the group’s products.
TPH group executive director Maxwell Chinorwadza said this would be better than the $25,8 million recorded last year.
“We expect the sales to be from tractors, caterpillars, generators and motor vehicles,” said Chinorwadza.
The group recorded sales volumes of $18,9 million in the first six months of the current financial year compared to $11,5 million during the comparative period.
He said the liquidity crisis in the country had made it difficult for customers to secure loans to buy motor vehicles.
“Due to production constraints at the local assembly plants and limited funding facilities, vehicle unit sales at Puzey & Payne dipped 41% on last years’ comparative period,” a statement accompanying the financial results said.
Chinorwadza said funding problems had hampered the acquisition of new kits from Japan as they have to be paid for in advance.
TPH recorded parts and services growth of 23% and 40% respectively and this part of the company is expected to grow further this year.
During the period under review the group secured a franchise representation for Toyota.
It said the operation trading as Mutare Toyota is expected to improve product offering at Puzey & Payne.
Barzem the group’s division with a dealer representative for caterpillar and hyster equipment, achieved a 17 times growth on unit sales of material handling equipment while earth moving remained the same as the previous year.
TPH markets and supports machinery and vehicle units.
The company’s divisions include Farmec, Puzey & Payne, Barzem, Northmec and Manica Road Investments. Farmec holds franchises for Massey Ferguson, Perkins and implements brands for Monosem, Kongskilde Vicon, Howard and Drotsky while Puzey & Payne handles Peugeot, Mazda, Mitsubishi, Volkswagen and Audi vehicles.