Click here to download the full sales PDF.
The National Association of Automobile Manufacturers of South Africa (NAAMSA) commented yesterday that the local automotive industry would likely continue facing a difficult trading environment for the remainder of 2014 – citing the decline in first-quarter GDP, worsening trade deficit and the sharp rise in producer inflation, amongst others, for the gloomy forecast.
Aggregate new vehicle sales in May 2014 registered a decline of 5 025 (9,2%) from the 54 490 vehicles sold in May last year, with just 49 465 units sold. The export segment did even worse, registering a sales decline of 10 640 vehicles (40,5%) from the 26 252 new vehicles exported during May last year to the 15 613 units exported in May 2014.
Out of the total reported sales, 86,8% represented the units destined for dealers, while 5,6% went to the rental industry, 4,9% went to corporate fleets and 2,7% went to government.
All the individual segments except heavy trucks and buses registered declines, with sales in the passenger car market dropping by 4 207 units to total just 32 984 cars sold (compared to the 37 191 vehicles sold in May last year). Light commercial vehicles, bakkies and mini buses dropped by 752 (5,1%) units to total 13 866 vehicles sold, while 830 medium heavy vehicles were sold – a decline of 140 units (14,4%).
As mentioned before, the heavy trucks and buses segment was the only one reflecting a slight improvement – with an increase of 74 units (4,3 %) sold to total 1 785 units for the month of May 2014, compared to May 2013.
Fortunately, momentum in the export segment is expected to pick up soon, but the same cannot be said for the rest of the market, which will be negatively affected by such factors as increased new vehicles prices as a result of the exchange rate and upward pressure on interest rates.
NAAMSA anticipates that the domestic market would likely register a decline of between 3,5% and 5,0% compared to 2013.
