October new-vehicle sales again surprised on the upside, as was the case in September, when the statistics showed an 11.5% increase on September 2013.
New-vehicle sales were up 4.7% in October, compared with the same month last year.
Again, as in September – ably assisted by the car rental industry, which accounted for 19.9% of all new passenger cars sold in October – the new-car market inched up by 1.6%, to 40 666 units.
The National Association of Automobile Manufacturers of South Africa (Naamsa) says that sales were also nudged along by new-model launches, incentive packages, pre-emptive buying to avoid expected vehicle price increases, relatively strong corporate purchases and replacement demand.
Sales of new light commercial vehicles, bakkies and minibuses, at 15 827 units, jumped 14%, compared with October last year.
“Pre-emptive buying to avoid price increases, together with relatively strong corporate demand, contributed to the improvement,” says Naamsa.
Sales of medium trucks, at 889 units, declined 11%, while sales of heavy trucks and buses, at 1 880 units, increased by 10.4%.
While the improvement in underlying domestic new-vehicle sales and export sales is “most encouraging”, it is advisable to remain cautious regarding the performance of the automotive sector for the balance of 2014 and into 2015, advises Naamsa.
“Subdued economic growth, past increases in interest rates and above-inflationary new-vehicle price rises may translate into a difficult trading environment, particularly at franchise dealer level.”
That said, however, Naamsa has proved slightly more positive in its outlook for 2014 than last month, when it expected yearly sales to decline 4% to 5%, compared with 2013.
“The recent strength in the domestic market can result in overall new-vehicle sales for 2014 reaching levels similar to those recorded in 2013,” the association notes.
Year-to-date statistics show that vehicle sales are down 1.83% for the first ten months of the year, compared with the same period in 2013.
“The second half of the year is performing far better than the first,” says WesBank head of research Rudolf Mahoney. “If this firming continues, the year will close out far better than initially expected.”
Against the background of current industry vehicle production volumes, further improvement in new-vehicle export numbers is expected over the remainder of 2014 and through 2015, adds Naamsa.
October new-vehicle exports increased by 33%, to 32 165 units, compared with the same month last year.
Top Sellers in October:
Cars and Bakkies:
1. Volkswagen Polo Vivo3 491
2. Toyota Hilux3 421
3. Ford Ranger 3 045
4. Toyota Corolla/Auris/Quest2 398
5. Volkswagen Polo 2 333
6. Mercedes-Benz C-Class 1 789
7. Nissan NP200 1 675
8. Toyota Etios 1 671
9. Chevrolet Utility 1 445
10. Toyota Quantum 1 264
Medium Trucks and Vans:
1. Isuzu N-Series 231
2. Hino 300 Series 127
3. Mercedes-Benz Sprinter 108
Heavy Trucks:
1. UD Trucks UD-H 163
2. Hino 500 Series 119
3. Isuzu F-Series 102
Extra-Heavy Trucks:
1. Mercedes-Benz Actros 156
2. UD Trucks Quon 148
3. MAN TGS 143
Buses:
1. MAN Bus 60