The automotive sector registered modest growth in June, with aggregate industry sales of 53 562 units for the month largely in line with industry expectations, having reflected an increase of 3.3% or 1 690 vehicles on the 51 872 units sold in June last year.

Figures released by the National Association of Automobile Manufacturers of South Africa (Naamsa) on Monday showed that, in contrast, export sales had registered a surprising decline, falling by 10.6% in volume terms.

Overall, of the total reported industry sales of 53 562 vehicles, 45 467 units, or 84.9%, represented dealer sales, while 8% represented sales to the vehicle rental industry, 4.5% to industry corporate fleets and 2.6% to government.

During June, a total of 37 057 new cars were sold, which represented an improvement of 1 144 units, or a gain of 3.2%, compared to the 35 913 new cars sold in June last year.

Sales of industry-new light commercial vehicles, bakkies and mini buses in June reflected an increase of 305 units, or 2.3%, to 13 729 for the month.

Sales of vehicles in the medium and heavy truck segments improved by 20.5% and 3.8% respectively, to 1 040 units for medium commercial vehicles and 1 736 units for heavy commercial vehicles.

The industry remained on target for new vehicle export growth of around 15%, in volume terms, for 2013.

On the back of a poorer export sales performance, Naamsa said the outlook for the automotive sector for the balance of the year looked less promising than at the beginning of 2013.

Domestically, expectations of subdued gross domestic product growth and above-inflation new vehicle price increases, as a result of the sharply weaker exchange rate and the April increase in carbon dioxide vehicle emission taxes on new cars, would contribute to a difficult trading environment.

However, Standard Bank Vehicle Asset Finance head Sydney Soundy added that the prime interest rate remained at its lowest for over three decades, and would continue to play a major part in maintaining the South African consumer’s appetite for debt.

“Other positive factors include replacement demand, the highly competitive trading environment, ongoing attractive incentives and high technology new model introductions,” Naamsa added.

In addition, pre-emptive buying by consumers over the medium term to avoid expected increases in prices of new motor vehicles as a result of the weaker rand could lend additional support.

Soundry added that manufacturers’ marketing and incentive programmes in a competitive industry would continue to positively spur sales of vehicles.