The National Association of Automobile Manufacturers of South Africa (Naamsa) today released encouraging results of new-vehicle sales for the month of October 2011. All segments of the market registered an improvement on the corresponding month last year, despite the “relatively high base” and further abating fears of a gloomy outlook for new-vehicle sales for the remainder of the year.
Aggregate industry domestic sales for the month of October improved by 8 309 units (18,9 per cent) to 52 338 vehicles compared with October last year. Total year-to-date domestic new-vehicle sales for the first 10 months of 2011 now stands 16,5 per cent ahead of the corresponding months in 2010, and remains above industry forecasts.
New-car sales reflected and improvement of 6 076 units (19,8 per cent). The new-car market continues to be boosted by strong private demand as well as the continued strength of the rental market.
The strength of the new-vehicle market in October can also be attributed to a number of factors including higher consumer confidence on the back of relatively low interest rates, imprived vehicle affordability as a result of aggressive marketing and sales incentive programmes along with the continued introduction of numerous volume-selling new models. Consumers may also be pushing forward their purchases in the light of an uncertain fiscal and monetary economic outlook in the near future.
Sales of new light commercials, bakkies and minibuses also exceeded expectations and registered an increase of 15,6 per cent compared with October 2010. This segment remains buoyant (up 11,4 per cent for the first ten months of 2011 compared with the same period during 2010).
Sales of vehicles in the medium and heavy commercial segments again reflected similarly impressive results, with an increase of 199 units (31,6 per cent) in the case of medium commercials and 280 units (19,9 per cent) in the case of heavy trucks and buses when compared with October last year.
Exports of SA-built vehicles in October reflected a decline of 712 units (2,7 per cent), compared with the relatively high base of October 2010. This positive growth is expected to continue with numerous new-vehicle production schedules, such as the Ford Ranger bakkie, due to start before the year is out, and new-vehicle exports is expected to reach about 280 000 units for the year.
The latest sales results is cause for optimism, and are now expected to outperform industry forecasts. But new-vehicle sales over the balance of the year and the start of the 2012 are likely to come under increasing pressure as the macro environment is become increasingly unsupportive for the consumer market.
*A PDF document with the full sales results for October can be downloaded from the DOCUMENTS tab above the image on this article.