New vehicle sales for the first two months of the year jumped 18% compared with the same period last year, providing “an encouraging signal that the country was moving out of its first recession in 17 years”, said McCarthy CE Brand Pretorius on Tuesday.

“The motor industry was regarded as an accurate barometer of business confidence and activity in the real economy, so the February new vehicle sales performance was heartening,” said Pretorius.

McCarthy was one of the largest retail vehicle groups in South Africa.

Total new vehicle sales in February of 39 312 units might have only been marginally better than January’s number, but it was 20,5% better than the motor industry’s performance in February 2009.

The National Association of Automobile Manufacturers of South Africa (Naamsa) on Tuesday reported that new passenger car sales in February grew by 27,5% compared with the 20 403 new cars sold during the same month last year, when sales had been particularly depressed owing to the global credit crunch.   

February sales of new light commercial vehicles, bakkies and minibuses improved by 13,6%, while sales in the medium truck market declined by 34,3%. However, heavy truck sales improved by 1,7%.

Bus sales expanded by 71 % as the country geared up for the 2010 FIFA World Cup.

“The strong year-to-date new vehicle sales growth has exceeded our expectation and we hope the current momentum continues in March,” noted Pretorius.

Exports of South African produced vehicles, at 14 123 vehicles, declined by 5,1%compared with February last year. 

However, Naamsa noted that manufacturers’ projections suggested that the country’s export sales could grow by 32% from last year’s 174 947 vehicles.

Volkswagen’s new Polo put in a strong export performance.

Volkswagen of South Africa (VWSA) in February exported 3 404 new Polos to right-hand drive markets around the world.

“By the end of 2010 we plan to export in excess of 55 000 New Polos to major global markets. The new Polo is pivotal to our domestic and export manufacturing and sales plans going forward,” said VWSA sales and marketing director Mike Glendinning.

Toyota sales held firm at 8 420 units locally, with export sales of 5 125 units, following the February recall of some Corolla, Auris and Verso models owing to potentially faulty accelerators.

This compared with 8 495 Toyotas sold in South Africa in January, and export sales of 2 450 units.

Toyota South Africa Motors spokesperson Leo Kok said the company's February sales increased 1% over January, and 13% compared with February 2009.

"Our daily sales rate is holding steady."