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New vehicle sales up by 3.2% in 2013, exports slip by 0.8%

New vehicle sales up by 3.2% in 2013, exports slip by 0.8%

Photo by Duane Daws

7th January 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Unaudited data released by the Department of Trade and Industry on Tuesday showed that new vehicle sales in South Africa increased by 3.2%, to 650 620 units, in 2013 over 2012.

This number signalled the fourth year of consecutive growth for the local industry, following record sales of 714 315 vehicles in 2006, and a subsequent three-year market decline through to 2009.

New vehicle exports from South Africa, however, failed to show the same growth, and dropped 0.8%, to 275 822 units, in 2013.

New passenger car sales in South Africa reached 450 440 units in 2012, up 1.8% over 2012 numbers.

It seemed as if vehicle importers Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD) had a tough year in this segment of the market, with their combined sales down 7.4%, to 68 821 units. Chinese importer Great Wall Motors South Africa (GWMSA) had an equally tough year in the passenger car market, with sales declining 46.2% in 2013, to 1 899 units.

AMH imports the Hyundai and Kia brand, among others.

The light commercial vehicle market, which includes the popular South African bakkie brands, was up 5.7%, to 169 234 units, in 2013 over 2012. GWMSA showed some growth here, increasing its sales by 16.3%, to 4 961 units.

Domestic medium truck sales showed healthy gains in 2013, and grew 14.8% to 11 595 units.

Sales of heavy trucks expanded by 9.9%, to 5 477 units. Extra heavy truck sales grew 10.4% over 2012, to 12 828 units.

Bus sales slipped 7.8%, to 1 046 units.

‘WELL BELOW EXPECTATIONS’
The National Association of Automobile Manufacturers of South Africa (Naamsa) said in a statement that the 2013 numbers came in well below its original expectation of 7.3% growth in domestic sales volumes for the year. 

However, the association noted that sales of medium, heavy and extra-heavy commercial vehicles performed “substantially better than the car and light commercial vehicle sectors”. 

Naamsa added that preliminary estimates indicated that the motor industry’s new-vehicle-related sales turnover had grown by about 11% last year, based on volume increases and a weighted average increase of about 8% in new vehicle prices during 2013, to reach around R205-billion for the year. 

Industry new vehicle export sales were estimated to have added a further R52-billion to total industry revenue in 2013.

Naamsa noted that export sales were negatively affected by a seven-week strike in the automotive industry as from the middle of August, through to the first week in October.

As a result,  vehicle exports at 275 822 units were well down from the association’s original projection of 336 000 units. 

However, despite the lower export numbers, 2013 still represented the third-highest industry export figure on record. 

GROWTH EXPECTED IN 2014
Assuming further improvements in the global economy and projected higher exports into Africa, Asia and North America, Naamsa said it expected new vehicle exports to reach 331 400 units in 2014 – a 20% jump over 2013 numbers.

Demand for light commercial vehicles in African markets was, for example, expected to show above average growth.

The key factor expected to impact on domestic new vehicle sales in 2014, would be higher-than-inflation price increases, added the association.

“The weakness in the rand during 2013 against major international currencies – a depreciation on a trade-weighted basis of over 20% – has resulted in significant cost pressures in respect of imported content (used in locally manufactured vehicles) and imported vehicles.”

Adding these price increases to what would probably be a marginal improvement in the South African economy, Naamsa projected only a modest uptick in new vehicle sales for 2014, at 652 000 units.

DOMESTIC PRODUCTION TO INCREASE IN 2014
Factoring in the expected improvement in exports, domestic production of vehicles in South Africa during 2014 was expected to expand from around 550 000 vehicles in 2013, to about 611 000 vehicles in 2014 – an improvement of 11%.

TOYOTA STILL TOPS, VW SECOND
Toyota again came out as market leader in 2013, with sales of around 127 000 units. The local arm of the Japanese company was also the top exporter, with around 80 000 units leaving South Africa.

Volkswagen Group South Africa came second, selling around 111 500 units in 2013, and exporting 52 000 new vehicles.

South Africans bought 2 438 Porches last year.

Edited by Creamer Media Reporter

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