http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.15Change: -0.05
R/$ = 11.65Change: -0.10
Au 1283.66 $/ozChange: 10.51
Pt 1240.50 $/ozChange: 12.30
 
 
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  
 
 
Oct 02, 2009

September auto sales up on August, but still down 20% on last year

Back
Africa|Automobile Manufacturers Of South Africa|Ford Motor Company|McCarthy CE Brand Pretorius|Rental|Africa|South Africa|Car Rental|Passenger Car Market|Vehicle Retailer|Jacques Brent|Mike Glendinning|Volkswagen
Africa|Rental|Africa|||
africa-company|automobile-manufacturers-of-south-africa|ford-motor-company|mccarthy-ce-brand-pretorius|rental|africa|south-africa|car-rental|passenger-car-market|vehicle-retailer|jacques-brent|mike-glendinning|volkswagen-person
© Reuse this



The total new vehicle market rebounded slightly in September, with sales increasing by 6,1% compared with August, to reach 35 931 units.

This is according to data released on Friday by the National Association of Automobile Manufacturers of South Africa and Associated Motor Holdings.

However, compared with September 2008, the market still showed a decline of 19,5%.

“September sales are reassuring, but by no means an indication yet of the market making significant gains,” commented Ford Motor Company of Southern Africa sales and marketing vice-president Jacques Brent.

Sales of new passenger cars in September showed an increase of 6,2% over sales recorded in August, totalling 23 813 units.

It is likely that sales to car rental companies – similar to what happened in July and August – again accounted for more than 20% of reported sales.

It is estimated that car rental companies took delivery of almost 5 000 vehicles in September, which undoubtedly boosted the market, said vehicle retailer McCarthy CE Brand Pretorius.

Sales to private customers remained under pressure owing to the high levels of household debt and the reluctance of customers to take on fresh debt, he added. Evidence of this was the fact that growth in private sector credit had slowed to its lowest level in more than 40 years in September.

September sales in the light commercial vehicle segment increased by 5,5% from August, but the 10 525 units fell 21,9% short of September 2008 sales.

A similar trend prevailed in the other segments of the South African vehicle market.

The 551 medium commercial vehicles sold were 2% up on last month’s results, but 35,8% in the red compared with September last year.

Sales in the heavy commercial vehicle segment reached 1 042 units, an increase of 10,4% on August’s results, but 48,6% down on the number achieved in September 2008.

Pretorius said that subdued levels of business and consumer confidence were still prevailing, undermining the propensity to buy.

“It is also likely that disposable income will remain under pressure in the coming months, which makes a significant improvement in new vehicle sales over the medium term improbable.”

Pretorius said the motor industry was preparing itself for a tough last quarter.

END OF DOWNTURN IN SIGHT – VWSA

“While continuing to enjoy the support of seasonally strong sales to rental car companies, the performance of the new passenger car market in September proved encouraging, and supportive of the view that the decline in the new car sales cycle that began in June 2006 is currently in the process of bottoming out,” said Volkswagen of South Africa sales and marketing director Mike Glendinning.

“The total passenger car market recorded in September was the largest monthly market recorded to date in 2009,” he said.

However, Glendinning warned that there was still some way to go before the recovery gained real traction.

“Households remain in debt and consumers are wary of borrowing.”

Looking forward, Glendinning expected a slow recovery in the demand for new cars through the end of 2009 and into 2010, as the economy moved out of recession in coming months, taking pressure off financially beleaguered households.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
Germany will soon be home to some of the hottest and coldest temperatures, most arid and humid conditions, hurricane force wind speeds, and highest altitudes to be found on the planet, courtesy of a new climatic test centre being built by Ford at its engineering...
Taiwan-based tooling machinery company Kao Ming says its ‘customer-first’ philosophy has led to continuous research and development (R&D) of new products, which has also triggered its market growth in the US, Germany and China in recent years.
More
 
 
Latest News
SAA acting CEO Nico Bezuidenhout, Finance Minister Nhlanhla Nene and SAA chairperson Dudu Myeni
Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
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