http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.05
R/$ = 12.32Change: -0.01
Au 1168.78 $/ozChange: -0.02
Pt 1083.00 $/ozChange: 1.00
 
 
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  
 
 
Oct 02, 2009

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

Back
Africa|Rental|Africa
Africa|Rental|Africa
africa-company|rental|africa
© 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 Passenger Vehicles News
The Goodyear Tyre & Rubber Company has reached an agreement with Yihai Food and Oil Industry, in China, for the supply of silica derived from rice husk ash. Goodyear will begin using the silica this year in a consumer tyre that will be manufactured in its factory in...
The BMW Group’s Rosslyn plant in June received the Platinum Plant Quality Award in the JD Power 2015 Initial Quality Study (IQS) for producing vehicles – on a global basis – with the fewest defects or malfunctions of models for the US market. The plant assembles the...
New car sales, which fell by 4.8% in June compared with June last year, are the latest victim of economic uncertainty. Simphiwe Nghona, the executive head for motor retail at Wesbank, talking to ANA about new car sales figures released by the National Association of...
Article contains comments
More
 
 
Latest News
An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday. The Independent Municipal and Allied Trade Union (Imatu)...
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 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
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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