SA new-vehicle market set to decline by between 3.5% and 5.0% in 2014
May new-vehicle sales plummeted by 9.2%, to 49 465 units, compared with the same month last year, reports the Department of Trade and Industry.
The South African new passenger car market, at 32 984 units, declined 4 207 units, or 11.3%, compared with May last year.
Domestic sales of new light commercial vehicles, bakkies and minibuses, at 13 866 units, declined by 5.1%, while sales of medium trucks, at 830 units, dropped by 14.4%.
New heavy truck and bus sales provided the only good news for the month, increasing by 4.3%, to 1 785 units.
May vehicle export sales from South Africa dropped by 40.5%, compared with the same month last year, to 15 613 units.
The National Association of Automobile Manufacturers of South Africa (Naamsa) says the decline in export sales is due to the temporary lack of exports by Mercedes-Benz South Africa, as it gears up production of the new C-Class.
Volkswagen Group South Africa is also gearing up for production and export of the refreshed Polo.
Exports are expected to improve from the middle of the year.
The outlook for the automotive sector for the balance of the year, however, looks increasingly less promising, notes Naamsa.
“In the case of domestic sales, the challenging macroeconomic environment characterised by lower growth, exchange rate-induced new-vehicle price increases, and further upward pressure on interest rates will translate into difficult domestic trading conditions and pressure on margins, particularly in the new car and light commercial vehicle sectors.”
Naamsa anticipates that the new-vehicle domestic market is likely to decline between 3.5% and 5.0% in 2014, compared with 2013.
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