Naamsa and Associated Motor Holdings (AMH) recently released the new car sales figures for the month of September, and with a 6,1 per cent increase in sales over August, it seems that things are looking up, even though it be ever so slightAlthough close to 10 000 more units were sold during September last year, the 35 931 new vehicles sold during September 2009 shows that there is modest improvement from sales in August, which stood at 23 813 units sold.
Statements issued by various manufacturers reiterate the sentiment that there is some positive growth, and that many seem are optimistic about the future even though companies are gearing up for a tough fourth quarter as a result of less income being available in the last few months of the year and over the festive season.
Renault South Africa recorded its best market share since February 2006 and its highest sales volume in 24 months. The company’s market share grew to 4,31 per cent. Renault SA remain optimistic as it notes that finance application approvals are showing a slight increase and that current interest rate levels are helping to encourage the public to make new car purchases.
“On the dealer channel we achieved our best month of the year with a volume in excess of 400 units and a market share of 2,85 per cent,” reported Régis Fricotte, Vice President of Marketing at Renault South Africa. “For the first time this year, this positions us amongst the best performers and at the top of the manufacturer log.”
Mike Glendinning, Director of Sales and Marketing, VW of SA exclaims that “While (the entire new car market) continues to enjoy the support of seasonally strong sales to rental car companies, the performance of the new passenger car market in September proved encouraging and supportive of the view that the decline in the new car sales cycle that began in June 2006, is currently in the process of bottoming out”.
“VW of SA continued to dominate the passenger car market with 19,6 per cent share. The Polo/Polo Classic range was once again the most popular car Brand in the market, with sales of 1 927 units,” said Glendinning.
“Significantly, the Audi Brand recorded its best monthly sales year to date, with 855 units sold and 3,6 per cent share of the total passenger market and 3,5 per cent share year to date”.
Glendinning remains a realist and notes that “… households remain in debt and consumers are wary of borrowing, which together with the current strict lending criteria of banks has resulted in the annual rate of growth in credit extended to the private sector falling to 2,3 per cent, the lowest level in over four decades. Recent data also reflects low and volatile levels of both business and consumer confidence.”
Looking forward, Glendinning said “These circumstances should begin easing with declining inflation, aggressive interest rate reductions, with the prime rate having fallen by nearly a third from 15,5 per cent to 10,5 per cent, declining debt servicing costs and a slow recovery in real household incomes. As the economy moves out of recession in coming months, taking pressure off financially beleaguered households, we should experience a slow recovery in the demand for new cars through the end of 2009 and into 2010”.
The NAAMSA and AMH results also show that September sales in other parts of the market also increased over August 2009, but remain quite a bit below September sales in 2008.
In a statement released by McCarthy Motor Holdings, the projected sales for the full year are forecast to be 390 000 units. In 2008, 533 327 new vehicles were sold.
Download a summary of the latest new vehicle sales statistics as supplied by Naamsa.
