Click here to download the November 2015 sales figures.
In amplification of the new vehicle sales statistics for the month of November, 2015 – released on December 1 on the website of the Department of Trade and Industry – NAAMSA commented that domestic new vehicle sales and vehicle exports had registered marginal gains compared to the corresponding month last year.
November 2015’s aggregate new vehicle sales at 51 256 units had improved by 201 units or 0,4% from the 51 055 vehicles sold in November last year. Overall, out of the total reported sales of 51 256 vehicles, an estimated 43 564 units or 85% represented dealer sales, 8,1% represented sales to the vehicle rental industry, 3,9% constituted sales to government and 3,0% to industry corporate fleets.
The industry’s export numbers had been affected by special circumstances arising from the new Ford Ranger, which was at the early stage of its launch phase. The run-out/run-in of the product had contributed to the relatively low industry export numbers. Industry vehicle exports were expected to show a strong recovery over the next few months. Furthermore, 2015 industry vehicle exports would beat a record level.
Sales of new cars at 33 038 units reflected a decline of 212 units (-0,6%) compared with the 33 250 new cars sold in November last year. Consumers’ disposable income remained under pressure despite the extremely attractive incentive packages on offer. Intense competition in the market continued to put pressure on margins throughout the automotive value chain.
Domestic sales of new LCVs, bakkies and mini buses at 15 242 vehicles reflected an improvement of 171 units (+1,1%) compared with the 15 071 light commercial vehicles sold during the corresponding month last year. Overall, sales of light commercial vehicles continued to hold up well with year to date sales slightly higher than the sales recorded during the first eleven months of 2014.
Medium commercial vehicle sales at 1 028 units had recorded a decline of 32 vehicles (-3%) compared with the corresponding month last year. In contrast, heavy and extra heavy commercial vehicles sales at 1 948 vehicles had registered a substantial improvement of 274 units (16,4%) compared with the corresponding month last year.
New vehicle exports at 28 112 units represent a gain of 66 vehicles or an improvement of 0,2% compared with the 28 046 export sales in November 2014. Vehicle exports for 2015 should reach a record number of about 340 000 (2014: 276 873 export units).
While automotive industry vehicle production remained on a solid footing on the back of higher new vehicle exports, the domestic new car and aggregate commercial vehicle sales were expected to remain under pressure into 2016, the association said.
The sharp decline in the November, 2015 Purchasing Managers’ Index reflected an economy under pressure and suggested progressively more difficult underlying economic conditions, Naamsa said. Moreover, the October 2015 increase of 0,25% in interest rates would serve to accelerate the current weak trend in the economy. The associated rise in debt-servicing costs would also have a negative impact on already low levels of consumer and business confidence. Coupled with the impact of the drought and its inevitable effect on agricultural output and prices, the rising interest rate cycle would make it more difficult for South Africa to reverse the current low growth environment.
Naamsa therefore anticipated that domestic new vehicle sales would remain under pressure during 2016.
Click here to download the November 2015 sales figures.
