According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), despite the subdued economic growth that’s negatively affected the industry for the first half of the year, the month of September 2014 reflected substantial growth in sales compared to the same period last year.
All respective sectors reflected above average increases, and collectively registered a 6 283 unit increase in the amount of new vehicles sold compared to September 2013 for a total of 60 854. Export sales, at 30 778 units, reflected a 258 % (22 180 units) improvement over the 8 598 vehicles exported in September 2013.
Overall, out of the total reported industry sales of 60 854 vehicles, 74,5 % represented dealer sales, 17,3% represented sales to the vehicle rental industry, 4,1% to industry corporate fleets and 4,1% to government.
The new car segment performed well above expectation and at 42 918 vehicles sold reflected an increase of 2 997 units (7,5%) from the 39 918 vehicles sold in September last year. Domestic sales of new light commercial vehicles, bakkies and mini buses at 15 179 units during September 2014 reflected an improvement of 3 009 units or 24,7% compared to the 12 170 light commercial vehicles sold during the corresponding month last year.
Sales of vehicles in the medium and heavy truck segments of the industry at 904 units and 1 853 units, respectively, reflected a modest improvement in medium commercial vehicle sales of 9 units or 1,0 % whilst heavy trucks and buses had continued to perform well showing an improvement of 268 units or 16,9 %. The strength in heavy truck sales was encouraging and suggested improved investment sentiment.
The organization suggested that year on year comparisons should take account of the fact that new vehicle exports in September last year had been severely depressed as a result of the prolonged strike action, at the time, in the vehicle and component manufacturing industries.
Whilst the current improvement in underlying domestic new vehicle sales and export sales was encouraging, a cautious outlook for the automotive sector for the balance of 2014 has been advised. Lower economic growth, recent increases in interest rates, the possibility of a further interest rate hike before year end and above inflation new vehicle price rises – would combine to ensure that the new vehicle sales trading environment would remain difficult. The domestic market was expected to register a decline, in volume terms, of between 4% and 5% compared to 2013.
