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In amplification of the new vehicle sales statistics for the month of February, 2016 – released today for public consumption on the website of the Department of Trade & Industry – the Association commented that new vehicle sales had registered further weakness with the new car market declining by 6,1% and the light and medium commercial vehicle segments reflecting double digit declines. Export sales of new motor vehicles had registered a marginal decline.
In the event, February 2016 aggregate new vehicle sales at 48 149 units had registered a decline of 4 236 vehicles or a fall of 8,1% compared to the 52 385 vehicles sold in February last year. The February, 2016 export sales at 29 308 units reflected a decline of 468 vehicles or a fall of 1,6% compared to the 29 776 vehicles exported in February last year.
Overall, out of the total reported Industry sales of 48 149 vehicles, an estimated 38 788 units or 80,6% represented dealer sales, 12,1% represented sales to the vehicle rental Industry, 4,2% to Industry corporate fleets and 3,1% to government.
The new car market had continued to experience pressure during February, 2016 and at 32 826 units registered a decline of 2 121 cars or a fall of 6,1% compared to the 34 947 new cars sold in February last year. The car rental Industry had again made a positive contribution and had accounted for 17,5% of new car sales during the month. It was clear that the franchise dealers were taking strain with ongoing pressure on margins.
Domestic sales of industry new light commercial vehicles, bakkies and mini buses at 13 161 units during February, 2016 reflected a decline of 1 982 units or a fall of 13.1% compared to the 15 143 light commercial vehicles sold during the corresponding month last year. Model run outs and model run ins had played a role in the February sales numbers.
Sales of vehicles in the medium and heavy truck segments of the Industry at 659 units and 1 503 units had also registered weakness and, in the case of medium commercial vehicles, reflected a decline of 98 units or 12,9% and, in the case of heavy trucks and buses, a decline of 35 vehicles or a fall of 2,3% compared to the corresponding month last year.
Industry new vehicle exports during February, 2016 had registered a small decline compared to the corresponding month last year. Increases in new vehicle exports were expected to materialise from March/April, 2016 onwards on the back of the anticipated contribution by Hilux light commercials with the resumption of export sales with effect from March, 2016 into Africa and from mid-2016 to Europe.
Domestically, given the difficult economic environment and low GDP growth prospects, the reality of well above inflation new vehicle price increases and expectations of further interest rate hikes – the outlook for 2016 in terms of domestic new vehicle sales remained constrained. At this stage, the consumer demand sensitive new car market was anticipated to decline by around 9% in volume terms to about 375 000 units in 2016 down from the 412 826 new cars sold in 2015. New commercial vehicle sales were expected to perform slightly better with a decline of around 5% in volume terms.
