Naamsa, the National Association of Automobile Manufacturers of South Africa, today commented that the new vehicle sales statistics (compiled by Messrs RGT SMART, Naamsa’s independent statistical service provider) showed dramatically slowed growth for the month of September following the months of double digit momentum that characterised the earlier period of the year.
Aggregate industry domestic sales improved by 1,4 per cent (740 units) to 55 097 from the 54 357 units sold in September last year, while export sales registered an increase of 2,7 per cent (703 units) to 26 638 units. The association attrtibuted the stunted growth to the very strong sales experienced in September last year, which set a high base for comparison – as well as the circumstances in the aftermath of the Marikana massacre and industrial action experienced in a number of sectors of the economy. All the factors mentioned have negatively affected business in South Africa in the past month.
While Mercedes-Benz South Africa provides a single sales number for passenger cars, commercial vehicles and export sales, Messrs RGT SMART continues to compile estimates for MBSA commercial vehicles by segment based on historical sales trends and forecasting techniques. Out of the total detailed reported industry sales, 78,4 per cent represented dealer sales, 13,9 per cent represented rental industry sales, 3,4 per cent represented industry corporate fleet sales and 4,3 per cent represented sales to government.
Aggregate new vehicle sales (including MBSA) for Septemer 2012 maintained modest growth at 4,4 per cent or 39 496 units, compared to the 37 829 new vehicles sold in September 2011 and the year-to-date sales remained 11,5 per cent ahead of the corresponding months of 2011. Industry light commercial vehicle sales (including bakkies and mini buses) reflected a decline, and at 13 279 units displayed a decrease of 5,2 per cent or 725 units compared to the 14 004 LCVs sold during September last year. Sales of vehicles in the medium and heavy truck segments of the Industry at an estimated 779 and 1 543 units, respectively, had recorded a decrease of 73 units or 8,6 per cent, in the case of medium commercial vehicles, and a decline of 129 units or 7,7 per cent
Exports of South African produced motor vehicles, including MBSA export sales data, during September, 2012 at 26 638 vehicles had registered a marginal improvement of 703 units or 2,7 per cent compared to the 25 935 vehicles exported in September last year. The momentum of Industry export sales could receive support over the medium term as various export programmes were ramped up. However, exports into Europe would remain under pressure as the Eurozone automotive Industry continued to be characterized by massive over capacity and sluggish demand.
Despite prospects of a lower domestic economic growth environment, there were a number of factors that would continue to support domestic sales. These included historically low interest rates, ongoing improvement in vehicle affordability in real terms and higher demand for credit by households and businesses. The recent 0.5 per cent reduction in interest rates would also support sales of consumer durable products, particularly new motor vehicles. In terms of domestic sales, the industry remained on track during 2012 for growth of around 10 per cent.
You can read the full sales report by clicking on the DOCUMENTS tab and downloading the PDF