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According to Naamsa (National Association of Automobile Manufacturers of South Africa), 2012 was a relatively positive year, riding on three-year growth after the global economic downturn a few years ago. To end off the year, December sales showed modest improvement over the previous year and exports during the same period demonstrated increased demand as well.
2012 ended positively, with aggregate industry new-vehicle sales at 46 016 units – recording an improvement of 825 vehicles or a gain of 1,8 per cent compared to the total new vehicle sales of 45 191 units during the corresponding month of December 2011. The December 2012 new-passenger-car market, which recorded a year-on-year volume improvement of 7,6 per cent, had again been supported by relatively strong demand on the part of the car-rental companies with the car-rental industry accounting for 14,3 per cent of total sales.
Export sales had also recorded substantial gains during December 2012 and at 19 719 units reflected an improvement of 5 554 units, or 39,2 per cent compared to the 14 165 vehicles exported during December, 2011.
After discussions with the department of trade and industry and Mercedes-Benz South Africa, Naamsa has also reported that the Mercedes Benz will return to full reporting of its sales and export figure immediately, after it spent last year only providing a single sales figure as part of a global directive by parent company Daimler AG. This means that the predicted figures by Messrs RGT Smart, Naamsa’s data provider, will be updated with the actual figures before the January sales figures are compiled.
Also, this year’s automotive-industry new-vehicle sales and export data will be compiled, verified and distributed by Messrs RGT SMART after the release, for public consumption, of the data on the website of the department. http://www.thedti.gov.za
In general, the new-vehicle sales registered during 2012 met Naamsa’s expectations, which had projected an improvement in new-vehicle sales for the year of up to eight per cent. Aggregate sales for calendar 2012 at 623 914 units had improved by 52 499 vehicles or about 9,2 per cent compared to the total of 571 415 new vehicles sold in South Africa during the previous year. Furthermore, factoring in the total sales reported by Great Wall Motors of 7 794 units for calendar 2012 – not split according to segment – the total South African new-vehicle market last year would have been around 631 700 vehicles.
On balance, 2012 turned out to be a year of relatively solid growth. New-vehicle sales generally and new-car sales in particular performed well above initial expectations despite a slowing economy. Initial calculations indicate that motor industry new-vehicle-related sales turnover had grown by about 11 per cent, based on volume increases and a weighted average estimated increase of about three per cent in new vehicle prices during 2012 to reach about R182 billion for the year. Industry new-vehicle export sales were estimated to have added a further R52 billion to the total industry revenue.
Assuming continued demand in most export markets, projected higher exports to African countries and factoring in the growing contribution of light commercial-vehicle export programmes, industry export sales during 2013 could improve by some 83 000 vehicles or about 30 per cent over 2012. Total industry exports are projected to reach about 361 000 units during 2013.
According to Naamsa, following the strong improvement in trading conditions in the automotive retail market in 2010 and 2011, the recovery continued throughout 2012 albeit on a more subdued basis. The positive momentum should continue into 2013 with demand supported by historic low interest rates, improved vehicle affordability, new high-technology model introductions, easier access for consumers to vehicle finance and continued strong replacement demand following record sales in 2006 and 2007.
