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New vehicle sales up 4.7%, outlook for 2014 improves

3rd November 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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October new vehicle sales again surprised on the upside, as was the case in September, when the statistics showed an 11.5% increase on September 2013.

Data released on Monday showed that new vehicle sales were up 4.7% in October compared with the same month last year.

Again, as in September, ably assisted by the car rental industry, which accounted for 19.9% of all new passenger cars sold in October, the new car market inched up by 1.6%, to 40 666 units.

The National Association of Automobile Manufacturers of South Africa (Naamsa) said in a statement that sales were also nudged along by new model launches, incentive packages, pre-emptive buying to avoid expected vehicle price increases, relatively strong corporate purchases and replacement demand.

Sales of new light commercial vehicles, bakkies and minibuses, at 15 827 units, jumped 14% compared with October last year.

“Pre-emptive buying to avoid price increases together with relatively strong corporate demand contributed to the improvement,” said Naamsa.

Sales of medium trucks, at 889 units, declined 11%, while sales of heavy trucks and buses, at 1 880 units, increased by 10.4%.

While the improvement in underlying domestic new vehicle sales and export sales was “most encouraging”, it was advisable to remain cautious regarding the performance of the automotive sector for the balance of 2014, and into 2015, advised Naamsa.

“Subdued economic growth, past increases in interest rates and above-inflationary new vehicle price rises may translate into a difficult trading environment, particularly at franchise dealer level.”

This said, however, Naamsa on Monday proved slightly more positive in its outlook for 2014 than last month, when it expected yearly sales to decline 4% to 5% compared with 2013.

“The recent strength in the domestic market can result in overall new vehicle sales for 2014 reaching levels similar to those recorded in 2013,” the association noted.

Year-to-date statistics showed that vehicle sales were down 1.83% for the first ten months of the year compared with the same period in 2013.

“The second half of the year is performing far better than the first six months,” said WesBank head of research Rudolf Mahoney. “If this firming continues, the year will close out far better than initially expected.”

Against the background of current industry vehicle production volumes, further improvement in new vehicle export numbers was anticipated over the remainder of 2014 and through 2015, added Naamsa.

October new vehicle exports increased by 33% compared with the same month last year, to 32 165 units.

Top Sellers in October:
Cars and Bakkies:

1. Volkswagen Polo Vivo 3 491
2. Toyota Hilux 3 421
3. Ford Ranger 3 045
4. Toyota Corolla/Auris/Quest 2 398
5. Volkswagen Polo 2 333
6. Mercedes-Benz C-Class 1 789
7. Nissan NP200 1 675
8. Toyota Etios 1 671
9. Chevrolet Utility 1 445
10. Toyota Quantum 1 264

Medium Trucks and Vans:
1. Isuzu N-Series 231
2. Hino 300 Series 127
3. Mercedes-Benz Sprinter 108

Heavy Trucks:
1. UD Trucks UD-H 163
2. Hino 500 Series 119
3. Isuzu F-Series 102

Extra-Heavy Trucks:
1. Mercedes-Benz Actros 156
2. UD Trucks Quon 148
3. MAN TGS 143

Buses:
1. MAN Bus 60

 

Edited by Creamer Media Reporter

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