In the face of economic slowdown and interest rate hikes, new vehicle sales statistics for the month of January, 2014 have shown that all major sectors in the automotive sphere experienced a marked decline compared with the corresponding month last year.
The Naamsa January 2014 aggregate new vehicle sales at 53 025 units showed a decline of 3 874 vehicles or a fall of 6,8% compared to the 56 899 vehicles sold in January last year. Most major segments recorded year on year declines – new cars 7,0%, light commercials 6,6%, medium commercials zero, heavy trucks 19,5% and extra heavy trucks 6,1%. Moreover, the January 2014 export sales at 13 960 units reflected a decline of 3 433 vehicles or a fall of 19,7% compared to the 17 393 vehicles exported in January last year.
Overall, out of the total reported Industry sales of 53 025 vehicles, about 42 881 units or 80,9% represented dealer sales, 13,5% represented sales to the vehicle rental Industry, 3,0% to Industry corporate fleets and 2,6% to government.
The new car market had been under pressure in January 2014 and at 38 008 units reflected a decline of 2 857 units or a fall of 7,0% compared to the 40 865 new cars sold in January last year. The car rental Industry had once again made a strong contribution and had accounted for 18,1% of new car sales in January, 2014.
Domestic sales of industry new light commercial vehicles, bakkies and mini buses at 13 145 units during January 2014 reflected a decline of 922 units or a fall of 6,6% compared to the 14 067 light commercial vehicles sold during the corresponding month last year.
Sales of vehicles in the medium and heavy truck segments of the Industry at 780 units and 1 092 units, respectively, had been unchanged, in the case of medium commercial vehicles, and reflected a decline of 95 units or 8,0% in the case of heavy trucks and buses – compared to the corresponding month last year.
Industry new vehicle exports during January, 2014 at 13 960 vehicles had registered a decline of 3 433 units or a fall of 19,7% compared to the 17 393 vehicles exported in January last year. This was due in large part to the lack of export sales by Mercedes-Benz SA as the company retooled for the production of the new C-Class.
Domestically, 2014 new vehicle sales were likely to experience head winds as a result of above inflation average new vehicle price increases, the slowdown in the economy and, more recently, rising interest rates. As a result, Naamsa anticipated a challenging domestic new vehicle trading environment characterised by consolidation in sales numbers at best around levels recorded last year. Export sales during the first half of 2014 would be affected by the absence of any contribution by Mercedes-Benz as the factory was in the process of being geared up for the production of the new model C-Class. Industry export sales, particularly light commercial vehicle exports, should however reflect strong growth from the middle of 2014 onwards.
