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NEW-VEHICLE SALES

Declining vehicle-sales trend continues into 2016

12th February 2016

By: Irma Venter

Creamer Media Senior Deputy Editor

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January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year.

Statistics released by the Department of Trade and Industry show that the domestic new passenger car market declined by 6.1%, to 34 936 units, compared with 12 months ago.

The car rental industry accounted for 24.6% of new-car sales in January.

Sales of new light commercial vehicles, bakkies and minibuses, at 12 074 units, fell 8.3%, while sales of medium trucks, at 531 units, dropped 15.6%.

New heavy truck and bus sales declined by 12.5%, to 1 074 units.

January also proved a poor month for exports, notes the National Association of Automobile Manufacturers of South Africa (Naamsa).

Export sales, at 13 057 units, unexpectedly declined by 3 652 units, or 21.9%, compared with January last year, largely owing to “logistics and shipment capacity constraints”.

“A substantial increase in new-vehicle exports is expected to materialise from March onwards,” says Naamsa.
The industry body expects 2016 exports to increase by around 40 000 vehicles, or about 12%, compared with last year, to an anticipated 375 000 units. Difficult Year
Domestically, a number of key indicators suggest that the South African economy will, however, continue to experience a difficult year, notes Naamsa.

The association says poor economic growth prospects, new-vehicle price increases well above the inflation rate, as well as further interest rate hikes, will see the outlook for new-vehicle sales deteriorate.

Naamsa expects the domestic new-car market to decline by 9% in 2016, to about 375 000 units, down from the 412 826 new cars sold in 2015.

New commercial vehicle sales are expected to perform slightly better, with an expected softening of between 3% and 5%.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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