NAAMSA has released a 2010 wrap up of vehicle sales and the report shows that new car sales numbers ended on the high note for 2010. When compared with the same month in 2009, December 2010's new vehicle sales reflect an improvement of just short of 30 per cent.
The final numbers show impressive performance across all sectors, and the result is that for the entire 2010 year, 492 956 units were sold – an improvement of 97 770 or 24,7 per cent over 2009.
Even though there has been a significant improvement, NAAMSA states that “the improvement should be seen in relation to the depressed sales levels and low base during 2009 as a result of the impact of the global financial and economic crisis at the time compounded by a recession in the domestic economy. The improved aggregate industry sales total for 2010 remained well below the annual aggregate sales achieved in each of the years 2005 through 2008”.
When it comes to industry trading, Naamsa reports that it remains competitive with over 57 brands and a little under 1 800 model derivatives in the new car sector. The turnover for new vehicle sales for 2010 improved by about 20 per cent to reach R130 billion.
One of the negatives of 2010 was industry strike action that all but crippled certain parts of the automotive industry. The new CO2 emissions tax did not help either and the strength of the Rand was not kind on exports. Despite those factors however, the export industry saw some growth.
“22 148 vehicles reflected an improvement in exports of 5 802 vehicles or a gain of 35,5 per cent compared to the 16 346 vehicles exported during the corresponding month last year,” Naamsa claims in its report.
Individual breakdown and comment:
VW:
“Volkswagen Group South Africa sold a total of 67 023 passenger cars in 2010 – growth of 34,3 per cent over 2009 – 4 per cent ahead of the total market year on year growth. With 19,9 per cent of the total passenger market, Volkswagen Group SA was again passenger market leader.”
“Looking ahead to 2011, inflation and interest rates are likely to remain low, household disposable income looks set to continue improving. Business and consumer confidence should reflect improvement during the coming year, annual rates of growth in credit extension to the private sector and in the money supply, while still at low levels, are clearly reflecting recovery.”
Mercedes-Benz:
Mercedes-Benz Cars has recorded its best ever December sales with a monthly figure of 1 238 units, resulting in a 117 per cent growth rate over December 2009 sales of 507 units.
“We are pleased to see notable growth in all model categories, resulting in an overall market share of 5,4 per cent compared to 3,6 per centin 2009,” says Eckart Mayer, Divisional Manager, Mercedes-Benz Cars.
Combined sales figures in 2010 of over 22 500 units reflects a 16 per centgrowth over 2009 (19 437), making Mercedes-Benz Cars the leading premium brand for passenger cars.
Toyota:
Toyota South Africa Motors (TSAM) ended 2010 on a high by delivering 9 711 new vehicles to customers in December. This equates to a market leading share of 24,4 per cent in a market that recorded sales of 39 504 sales in December, the best Christmas sales-month in 3 years.
“We are heartened by the strong sales performance in 2010, especially the second half of the year,” says Dr. Johan van Zyl, President and CEO of Toyota South Africa Motors and a Managing Officer of Toyota Motor Corporation.
McCarthy:
“The exceptionally high daily sales rate we experienced during the first half of December was very unusual indeed, but very welcome! Fortunately our inventory levels were healthy, mainly due to the successful efforts of the local vehicle manufacturers to catch up on the substantial production volume they lost during the industry strikes in August and September. As retailers we salute them for what they achieved over a comparatively short period of time, " commented McCarthy CEO, Brand Pretorius.
The new vehicle market performed much better in 2010 than even the most optimistic forecasts of a year ago.
”Compared with the anticipated growth of around 10 per cent we saw total sales increase by 24,7 per cent, with car sales accelerating by an impressive 30,6 per cent, admittedly off a very low base. This is the highest year-on-year growth rate recorded in the car market since 1963."
2011 forecast:
NAAMSA believes that for 2011, domestic new car sales, at this stage, were projected to improve by about 10 per cent in volume terms. New commercial vehicle sales, on the back of anticipated higher economic activity levels, could improve by up to 15 per cent.
Pretorius added that “the surprisingly good sales in the last quarter of 2010 – and December in particular – auger well for the market in 2011. However, to ensure sustainability in 2011 we obviously need robust confidence in the future, meaningful economic growth, improved levels of disposable income and a further enhancement in new vehicle affordability”.
* Click on the DOCUMENTS tab above to download a PDF of Naamsa's new vehicle sales statistics for December 2010
