New-vehicle sales down 6.9% in January, exports drop 21.9%

1st February 2016 By: Irma Venter - Creamer Media Senior Deputy Editor

New-vehicle sales down 6.9% in January, exports drop 21.9%

Photo by: Duane Daws

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 on Monday showed 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, noted 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,” said Naamsa.

The industry body expected 2016 exports to increase by around 40 000 vehicles, or about 12%, compared with last year, to an anticipated 375 000 units.

Domestically, a number of key indicators suggested that the South African economy would, however, continue to experience a difficult year, noted Naamsa.

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

Naamsa expected 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 were expected to perform slightly better, with an anticipated softening of between 3% and 5%.

Top Selling Cars and Bakkies in January:

1. Volkswagen Polo Vivo 3 287
2. Toyota Hilux 2 773
3. Ford Ranger 2 348
4. Volkswagen Polo 2 336
5. Toyota Corolla/Auris/Quest 1 970
6. Toyota Etios 1 937
7. Ford Fiesta 1 206
8. Nissan NP200 1 147
9. Toyota Quantum 1 010
10. Chevrolet Spark 993