New-style black cab sales rise Eco City, maker of the six-seater Mercedes Vito, has taken a 24% share of the London taxi market in two years
The days of the traditional black cab could be numbered. Taxi developer Eco City Vehicles today said its Mercedes Vito cab had taken 24% of new taxi sales in London since its launch two years ago.
Eco City expected to increase its market share further as more taxi drivers turned to its six-seater model instead of the old-style five-seater TX4 cabs that are a familiar sight in cities across Britain.
The company claims the Vito is more fuel efficient and more comfortable than the old-style cabs. In a boost to its environmental credentials, it launched an all-electric prototype taxi, the Mercedes eVito, in February and is in discussions to develop a hybrid Vito taxi.
Peter Da Costa, the chief executive, said Eco City had now sold more than 700 of the Vito taxis since they were launched, helping revenues to rise 30% last year. Pre-tax losses fell to £200,000 from £700,000.
It has increased production at its Coventry site, where it kits out the basic vehicle model sent by Mercedes from Spain, to 12 units a week from eight. Its biggest competitor is Manganese Bronze, which makes the TX4 black cab and recently moved production to China to save costs.
"Despite a tough economic environment, Eco City has delivered solid results for 2009. This reflects strong demand for the London-licensed Mercedes Vito taxi, which … continues to set the pace for new taxi sales in the capital.
"While trading conditions remain challenging, in particular due to the impact of recent airline disruptions on the taxi trade, we remain on track to report another year of progress. The Vito has established itself as a favourite with corporate London. With the total number of Vito taxis sold now more than 700, production has been stepped up at our site in Coventry," said Da Costa.
He said the return of bankers' bonuses meant more people were travelling in black cabs again in London. However, the effect on cab drivers from the airport shutdowns caused by the volcanic ash cloud had been "horrendous".
"It sent jitters right the way through the cab trade and everybody got spooked because they were saying this volcano could go on for months," he said, but added that drivers were now more confident over the issue.
Eco City said although trading conditions remained challenging, it was cautiously optimistic. "People are returning back to cabs now thanks to the bankers' bonuses, so if the driver can see steady income it settles it all down," Da Costa said. Eco City's shares rose 7.5% to 5.4p.
http://www.guardian.co.uk/business/2010 ... sales-rise
Login
Register
FAQ
