January new-vehicle sales fell by 1.2%, to 52 306 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 3.6%, to 36 982 units, compared with 12 months ago.
The car rental industry accounted for 15.3% of new-car sales in January, 2015, says the National Association of Automobile Manufacturers of South Africa (Naamsa).
Sales of new light commercial vehicles, bakkies and mini-buses, at 13 460 units, grew 6%, while sales of medium trucks, at 637 units, dropped by 17.6%.
New heavy truck and bus sales posted an 11.9% improvement, to 1 227 units.
January, however, proved to be a good month for vehicle exports. The local automotive industry sold 16 708 units to markets abroad – a 20.7% gain on January last year.
Naamsa expects that new- vehicle exports for 2015 will improve by roughly 15%, to a record of around 320 000 vehicles for the year.
Despite the decline in January sales, Naamsa is upbeat about the sales outlook for the remainder of the year.
“Near-term prospects for the new-vehicle market have improved on the back of a number of recent positive developments,” says the association.
“The latest Reserve Bank leading indicator increased significantly to its highest level in nine months. “Given the close correlation between new-car sales and the leading indicator, this development augurs well for vehicle sales in the short to medium term.”
Naamsa says the “substantial rise” in the purchasing managers index also suggests an improvement in business activity and manufacturing output in South Africa.
Consumer spending is also likely to benefit from the substantial decline in fuel prices over the past six months.
“Importantly, resultant lower inflationary pressures opened the way for stable interest rates well into 2015,” notes Naamsa.
“As a result of these factors, the outlook for 2015, in terms of new-vehicle sales, has improved over the short to medium term and will be reinforced further by expecta-tions of a higher economic growth rate of around 2.3% for the year.”
The association warns, however, that the security and stability of South Africa’s electricity supply may still upset the apple cart.