Growth in new vehicle sales continued in March courtesy of a strong passenger car market and nine per cent more selling days than in February, said McCarthy chief executive Brand Pretorius.
“Total sales increased by 11 per cent and all segments saw the positive demand trend sustained. It was particularly encouraging that monthly sales growth was maintained despite relatively modest deliveries to car rental companies, with only 2 414 cars of total passenger sales going that route,” he added.
New model introductions boosted sales together with vehicle purchases made by companies and organisations before the end of a budget cycle. Pretorius also believed that an improvement in the supply of new vehicles assisted sales and also led to the registration of a significant number of demos.
The result was a 20,1 per cent boost in volume over March 2009 for the overall market – including sales by Associated Motor Holdings – and this resulted in a welcome 18,7 per cent year-to-date increase for the first quarter of 2010.
“This was much better than anticipated, with the bulk of the growth coming from fleet sales and not private customers,” he said. “The improved sales rate extended to the light commercial sector, although the growth here was only 15 per cent month-on-month and 12,6 per cent year-to-date.
“Growth in the first quarter of 2010 resulted primarily from a higher level of economic activity and a significant improvement in both business and consumer confidence. Vehicle affordability has also improved due to modest new vehicle price increases and more attractive trade-in prices on offer because of the ongoing shortage of quality used car stock. Sales in January and February were also boosted by strong sales to car rental companies fleeting up for the World Cup,” Pretorius concluded.
Meanwhile, Jacques Brent, FMCSA’s vice president of marketing, sales and service warned that “we should still be cautious about the road to recovery. Comparing year on year sales gives a false sense of security as they’re compared to depressed market conditions and comparisons should be considered pre-October 2008 to give real indications of incremental growth.”
“With a 21,5 per cent share of the passenger market, VW dominated what was a very encouraging total market for March,” said Mike Glendinning, VWSA’s director of sales and marketing. “The new Polo was the top selling passenger Brand, with sales of 2 316 units and the new entry level Polo Vivo had an excellent debut month with sales of 1 601 units.”
“The Jeep Wrangler achieved the 125 sales mark last month. This improves upon February’s record of 100 units in a month and also represents one of the highest Wrangler sales months achieved in the international markets outside of North America. This 125 milestone was achieved on the back of robust sales across all three of Chrysler South Africa’s brands,” said Cleona Van Der Sandt, the marketing and events co-ordinator for Chrysler South Africa.
A Naamsa spokesman said the outlook for domestic sales in 2010 continued to improve and market growth could gain momentum as economic activity levels improved further in the medium term. The domestic market should also receive support from further improvement in business confidence and consumer sentiment as well as lower inflation and the benefits of interest rate reductions. Demand by the car rental industry should remain strong in the run-up to the World Cup.
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