http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 08, 2010

SA’s 2010 vehicle sales likely to rise after 25,9% drop in 2009

Back
Africa|Eskom|Rental|Africa|Manufacturing|Power
Africa|Eskom|Rental|Africa|Manufacturing|Power
africa-company|eskom|rental|africa|manufacturing|power
© Reuse this



Local new vehicle sales were expected to grow modestly, but off a low base, by 7% to about 422 800 units in 2010, compared with the 395 230 new vehicles sold in South Africa in 2009, vehicle retailer McCarthy CEO Brand Pretorius said on Friday.

Speaking to journalists at a media briefing in Johannesburg, he said that while there were some signs of a recovery in the global and local economic conditions, the local vehicle industry should continue to remain cautious.

New vehicle sales had slumped by 25,9% in 2009, its largest ever decline, according to figures provided by the National Association of Automobile manufacturers of South Africa and Associated Motor Holdings.

The previous largest drop had been a 24,8% decline recorded in 1985, while 2008 had seen the third largest decline of 21,1%.

The 2009 vehicle sales were well below the record sales of 714 325 units achieved in 2006 and a far cry from the one-million vehicles target that the local industry had once set itself, before the economic crisis hit.

The global and local economic crisis had left a legacy that would remain with the world for many years to come, Brand noted, adding: “The economic wounds are deep and the scars will take a long time to heal”.

He noted that the real economy, and the local manufacturing sector in particular, was still very depressed, while household debt to disposable income in South Africa remained high.

Up to one-million South Africans had lost their jobs in 2009, 40 000 of whom were retrenched from the motor vehicle industry, placing further strain on people’s disposable income.

Further retrenchments were also likely to continue occurring until mid-2010, Brand noted.

While inflation and the prime lending rate came down and the rand appreciated last year, new vehicle prices had increased and the timeframes for replacing cars had lengthened.

Even fleet owners had postponed replacing their vehicles, Brand said.

During 2009, many people had also opted to buy used vehicles, rather than new vehicles.

However, Brand highlighted that vehicle purchases from car rental firms in preparation for the 2010 FIFA World Cup had underpinned passenger vehicle sales in 2009, in some months representing as much as 20% of overall passenger vehicle sales.

Purchases from car rental firms were expected to continue showing growth during the first quarter of the year.

Meanwhile, a number of factors, including the sustainability of the economic recovery and consumer and business confidence, would determine how the vehicle sales market would perform going forward.

A projected 1,5% growth in South Africa’s gross domestic product, more favourable interest rates and higher levels of credit application approvals by banks, boded well for growth in the new vehicle market this year.

Further, the strength of the rand, the competitiveness of the local market and the fact that imported cars were gaining market share, would assist in achieving new vehicle price stability, said Brand, with vehicle affordability being a key aspect to unlocking growth in the sector.

The 2010 FIFA World Cup was expected to lead to improved consumer and business confidence this year.

However, power utility Eskom’s proposed electricity increases of 35% a year over a three-year period and government’s plans to introduce a carbon dioxide emissions tax on all new passenger vehicles sold in South Africa from April onwards, were expected to negatively impact on the country’s economy and on the vehicle sales market.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
US vehicle manufacturer Ford has announced that it will assemble its Ranger pickup in Nigeria, starting in October. The plant will be Ford’s first African production location outside South Africa, says Ford Motor Company Sub-Saharan Africa president and CEO Jeff Nemeth.
Hino has embarked on a strategy to become the number one truck brand in South Africa by 2020, says Hino South Africa (SA) VP Ernie Trautmann. Hino is currently placed third in the market, trailing Mercedes-Benz and Isuzu Trucks.
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96