The new vehicle sales statistics for January – as released by Naamsa on Friday – show that new 2007 has started on a positive note for retailers.
The new vehicle sales statistics for January – as released by Naamsa on Friday – show that new 2007 has started on a positive note for retailers. Combined new vehicle sales of 52 213 units improved by 6,9 per cent compared with the 48 821 units sold during January last year.
New vehicle exports for January had also shown an improvement rising by 629 export sales (7,9 per cent) to 8 556 vehicles from 7 927 units exported in January 2006. Furthermore, sales in all major segments of the market had registered gains compared with last January.
New car buyers seeking to benefit from the new year’s model registration date usually in January strong sales month. The modest growth this year has been attributed to a combination of high personal debt levels and interest rate hikes.
New car sales start to feel the pinch
January 2007 presented new car sales of 35 819 units. While this is the highest January monthly total on record (a gain of 1 541 units or a modest 4,5 per cent compared to the 34 278 new cars sold during January, 2006) it has become apparent that the higher interest rates and high personal debt levels are beginning to impact on consumer spending and new car purchasing.
LCV and Heavy Vehicle segments continue to flourish
Continued high levels of economic activity have resulted in sales of new light commercial vehicles, bakkies and minibuses increasing by 12,8 percent to 14 246 units during January, 2007. This is an improvement of 1 617 units compared to the 12 629 units sold in the corresponding month last year. The January 2007 light commercial vehicles also represented a record for a January month.
Supported by increased spending on infrastructure and positive investment sentiment sales of vehicles in the medium and heavy truck segments have also started the year on a strong note. This segment has seen a healthy increase over last January’s figures with 888 units and 1 260 units, respectively – an improvement of 36 units or 4,2 per cent, in the case of medium commercials. Heavy trucks and buses saw an increase of 198 units or 18,6 per cent– compared to January 2006.
Sales in the heavy and extra heavy commercial vehicle segments of the industry continued in a strong upward phase.
Strong export performance projected for year ahead
The industry’s 2007 built-up vehicle export performance would be taking into account the roll out of various export programmes with an anticipated improvement in exports of about 22,0 per cent to 220 000 vehicles from the 179 859 vehicles exported during 2006.
Steady growth in the production of vehicles for local and export markets would continue to benefit the domestic component industry and is projected to enhance the overall industry’s contribution to South Africa’s GDP in the year ahead. Industry production for 2007 was projected to reach 662 000 vehicles, an improvement of 12,6 per cent over 2006 industry domestic production of 587 719 vehicles.
The future direction of interest rates and new vehicle pricing are seen as the main factors determining the motor industry’s new vehicle sales performance in 2007. New vehicle prices will hinge upon the Rand/Yen and Rand/Euro exchange rates and domestic producer price inflation.
Naamsa anticipates a modest increase in new car sales of between 4 per cent and 6 percent. Given the escalation in spending on infrastructure and construction, it is expected that new commercial vehicle sales will again eclipse those of the car market with a projected increase in domestic sales of about 11 per cent.
Click here to download a summary of the latest new vehicle sales statistics as supplied by Naamsa.
Please note that because the sales figures supplied here have not yet been audited, CARtoday.com will not archive them. To access audited new vehicle sales figures for previous months, consult www.rgt.co.za.
