July new vehicle sales declined by 1.5%, to 57 670 units, compared with the same month last year, reported the Department of Trade and Industry on Friday.

The South African new passenger car market, at 39 945 units, shrunk by 418 units, or 1%, compared with July last year.

The National Association of Automobile Manufacturers of South Africa (Naamsa) said in a statement that the rental industry assisted July sales in this segment of the market, purchasing 14.2% of all new vehicles sold last month.

Domestic sales of new light commercial vehicles (LCVs), bakkies and minibuses, at 15 081 units, declined by 2% compared with July last year, while sales of medium trucks, at 856 units, dropped by 13%.

New heavy truck and bus sales posted a 1.8% decline, to 1 788 units.

July new vehicle export sales from South Africa dropped by 16.1% compared with the same month last year, to 22 773 units.

Naamsa said export sales were impacted by a countrywide, four-week manufacturing industry strike, which ended only in late July.

“The high incidence of industrial action experienced in South Africa over the past year has proved severely damaging to the economy, at a time when South Africa urgently requires stronger growth, faster employment creation and a narrowing of the current account and fiscal deficits.”

Barring further industrial actions, and assuming the resumption of normal production levels, an expected improvement in global economic conditions should benefit South African vehicle exports during the balance of 2014 and in 2015, said Naamsa.

The domestic market, however, “would face head winds over the short to medium term, in contrast with developments internationally, which have been characterised by expanding vehicle sales in China, the US and Europe”.

A domestic environment characterised by relatively low economic growth, rising interest rates and above-inflation new vehicle price increases would not be conducive to growth in new vehicle sales, noted Naamsa.

The 2014 local new vehicle market was expected to decline by around 5% compared with 2013.

The main impact was likely to be felt in the new car and LCV sectors.

Top Sellers in July:
Cars and Bakkies:
1. Volkswagen Polo 3 330
2. Toyota Hilux 3 117
3. Volkswagen Polo Vivo 2 887
4. Ford Ranger 2 564
5. Toyota Corolla/Auris/Quest 2 134
6. Toyota Etios 1 618
7. Nissan NP200 1 442
8. Toyota Quantum 1 405
9. Isuzu KB 1 379
10. Mercedes-Benz C-Class 1 377

Medium Trucks and Vans:
1. Isuzu N-Series 201
2. Hino 300 Series 170
3. Mercedes-Benz Sprinter 143

Heavy Trucks:
1. UD Trucks UD-H 107
2. Isuzu F-Series 101
3. Hino 500 Series 90

Extra-Heavy Trucks:
1. Volvo FH 145
2. Mercedes-Benz Actros 123
3. F-L Argosy 122

Buses:
1. MAN Bus 25