http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.08
R/$ = 12.39Change: -0.02
Au 1169.60 $/ozChange: -2.29
Pt 1064.00 $/ozChange: 2.80
 
 
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  
 
 
Aug 02, 2012

Vehicle sales surge 18%, but where are South Africans finding money to buy cars?

Back
Johannesburg|Africa|Ford Motor Company|MMI Holdings|Trucks|Africa|Europe|South Africa|United States|Automotive|Service|Dean Stoneley|Sheshi Kaniki|Records
|Africa|Trucks|Africa|||Automotive|Service||
johannesburg|africa-company|ford-motor-company|mmi-holdings|trucks|africa|europe|south-africa|united-states|automotive|service|dean-stoneley|sheshi-kaniki|records
© Reuse this



New vehicle sales in South Africa surged 18.3% in July compared with the same month last year. Year-to-date sales were up 11.6% compared with 2011.

Despite this good news for the local automotive industry, there were some concerns about the pace of growth, and how South Africans may be financing their new purchases.

Ford Motor Company of Southern Africa (FMCSA) marketing, sales and service VP Dean Stoneley said on Thursday that the local arm of the US manufacturer was “a little bit confounded by this growth”.

He said it was possible the local market could see surprising double-digit growth for the year, compared with most early 2012 forecasts pitched at around 5% to 7.5% growth, in light of a continuing global economic crisis, especially prevalent in Europe.

MMI Holdings senior economist Sheshi Kaniki said he had also been surprised by the strength in vehicles sales in 2012, especially considering factors such as lower consumer confidence, the moderation of wage growth, and the continued increase in the number of credit-active consumers with impaired records.

“Maybe it speaks to the cultural values in the South African society,” he postulated at a media breakfast in Johannesburg.

Cars are important to South Africans as a status symbol, to “say we have arrived”. Kaniki said he was often surprised by the financial decisions households would take to ensure they had the car they wanted.

He also questioned whether conflicting economic data would not perhaps indicate that consumers were securing their finance for new vehicles through unsecured lending once banks refused them finance.

FMCSA indicated that around 25% of customers made cash purchases in 2011, but that this had grown to 30% in 2012. Although there were a variety of mechanisms available to fuel this, it could be indicative of people borrowing on their bonds or securing personal loans to purchase new vehicles.

The National Association of Automobile Manufacturers of South Africa (Naamsa) said on Thursday that new vehicle sales reached 54 067 units in July.

New passenger car sales improved 18.2%, to 37 844 units, in July compared with the same month last year.

Sales of new light commercial vehicles, bakkies and minibuses were up 20.8%, with medium trucks up 7.9% and heavy trucks up 9%.

Exports of South African-produced motor vehicles, at 27 625 units, were up 11.6% on July last year.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
State-owned entity Transnet National Ports Authority (TNPA) has started the registration process for its integrated port management system (IPMS), which is scheduled to go live in the Port of Durban at the end of July. TNPA started issuing registration instructions...
The development of rural road infrastructure and public transport services remains critical to the delivery of South Africa’s – and other African States’ – developmenta agenda, requiring meticulous planning that ties in with the socioeconomic needs of the host...
PRASA CEO Lucky Montana
The Passenger Rail Agency of South Africa (PRASA) on Monday moved to assure South Africans that, despite contrary claims emerging in Sunday newspaper Rapport, its new – and growing – fleet of Afro locomotives were running on the nation’s expansive railway lines...
More
 
 
Latest News
State-owned entity Transnet National Ports Authority (TNPA) has started the registration process for its integrated port management system (IPMS), which is scheduled to go live in the Port of Durban at the end of July. TNPA started issuing registration instructions...
The development of rural road infrastructure and public transport services remains critical to the delivery of South Africa’s – and other African States’ – developmenta agenda, requiring meticulous planning that ties in with the socioeconomic needs of the host...
South Africa-focused mineral explorer and developer White Rivers Exploration (WRE) has signed a memorandum of understanding (MoU) with Windfall Energy to facilitate the joint exploration and development of WRE’s Heilbron and Kroonstad gas assets in the Witwatersrand...
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