The latest new-vehicle sales statistics for the month of August 2011, released by the National Association of Automobile Manufacturers of South Africa (Naamsa), has shown encouraging gains on the corresponding month last year. Aggregate industry domestic sales had improved by 5 144 units (11,1 per cent) to reach 51 436 vehicles from 46 292 vehicles sold during August last year.
Total year-to-date domestic sales for 2011 remained 14,5 per cent ahead of the corresponding eight months in 2010 – dipping below the industry forecast level of 15 per cent for the first time and indicating a tightening of the industry’s performance for the remainder of the year.
Export sales for August 2011 was at 24 835 units, an improvement of 5 230 units (26,7 per cent) compared with the strike-affected total of 19 605 in August last year.
Total new-car sales during August 2011 was at 36 197 units, reflecting an improvement of 2 672 new cars (8,0 per cent) compared to the 33 525 new cars sold during August 2010. The latest sales figures reflected a further decline in the growth momentum in the new car sales cycle and the year-on-year increase represented the lowest monthly improvement in the past nineteen months.
The August 2011 new car market had again received support from strong demand by car rental companies with the car rental industry accounting for 20 per cent of total car sales.
Sales of industry new light commercial vehicles, bakkies and minibuses had exceeded expectations and the 12 933 units sold during August 2011 reflect an increase of 2 140 units (19,8 per cent) compared with the 10 793 units sold in the corresponding month last year. For the first eight months of 2011, new light commercial vehicle sales were ahead by 7,5 per cent compared with the corresponding period last year, boosted by the expansion of the VW Amarok range and the recent freshening of the Isuzu KB and Mitsubishi Triton. This segment promises string growth for the remainder of the year, with the facelifted Hilux as well as the all-new Ford Ranger and Mazda BT-50 that should boost sales.
Sales of vehicles in the medium and heavy truck segments of the industry at 730 units and 1 576 units, respectively, had recorded an increase of 144 units or 24,6 per cent in the case of medium commercial vehicles, and a gain of 188 units or 13,5 per cent, in the case of heavy trucks and buses, compared with the corresponding month last year.
Sales of extra-heavy commercial vehicles had again registered an exceptional performance rising by 40,7 per cent from 764 units in August last year to 1 075 units in August 2011. Total year-to-date sales of medium, heavy commercials and buses remained 23,8 per cent ahead of the corresponding eight months of last year.
Exports of South African produced motor vehicles during August 2011 at 24 835 units reflected an increase of 5 230 vehicles or 26,7 per cent compared with the low base of 19 605 units exported during August last year.
The domestic macro environment going forward is likely to become less supportive for the industry. Recent low numbers in the purchasing managers’ index suggested a slower pace of expansion over the medium-term and modest growth in private-sector credit extension and in money supply, sharply higher administered price increases, including electricity and fuel costs, is expected to place pressure on consumer disposable income and demand for durable goods. As a result, new-vehicle sales over the balance of the year is expected to continue to show growth but at a lower-than-expected rate.
