New-vehicle sales in South Africa surged ahead in May, increasing 7.5%, to 53 997 units, compared with the same month last year.

Commenting on the statistics, compiled by RGT Smart, the National Association of Automobile Manufacturers of South Africa (Naamsa) on Monday said that 37 019 new passenger cars were sold in May, a 6.3% gain compared with the same month last year. 

Sales of new light commercial vehicles, bakkies and minibuses, at 14 301 units, was up 11.1%.

Sales of medium trucks and big vans were down 0.3% to 961 units, with heavy trucks, at 1 716  units, up 8.6%.

New-vehicle exports during May, at 26 325 vehicles, jumped 16.5% compared with May last year. 

Naamsa said it expected export numbers to continue improving for the rest of the year.

However, the association also warned that the outlook for the local automotive sector for the balance of the year appeared less promising than at the beginning of 2013. 

“Domestically, expectations of lower 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 vehicle emission taxes on new cars and certain categories of new light commercials – will contribute to a more difficult trading environment.”

The average transaction value for new cars increased from R203 000 in May 2011 to R207 000 (2.3%) in May 2012, noted WesBank sales and marketing executive head Chris De Kock.

“Then we saw a comparative jump to R232 000 (12.8%) in May 2013, indicating that manufacturers are increasing new car prices more aggressively this year than last year.”

Also commenting on the sales results, Absa vehicle and commercial asset finance head Wessel Steffens said the banking group’s vehicle finance application count in May again “grew significantly”, even if the approval rate dropped marginally owing to a decline in the quality of applications. 

“The industry is moving to a 72-month finance period as the number of applications in this term category increases each month. The main driver behind this is affordability, but it has the downside of an ever-increasing average contract period, which will continue to lengthen the [vehicle] replacement cycle,” he added.

Steffens also noted that entry-level passenger cars and new model releases were expected to be the main contributors to new-vehicle sales growth in 2013. New-vehicle sales in this segment had shown a 39% increase in the first quarter of 2013 compared with the same period last year.

Top Sellers in May:

Cars and Bakkies:

1. Toyota Hilux 3 076
2. Volkswagen Polo 2 688
3. Volkswagen Polo Vivo 2 645
4. Chevrolet Utility 1 853
5. Ford Ranger 1 621
6. Toyota Etios 1 507
7. Nissan NP200 1 476
8. Toyota Corolla/Auris 1 458
9. Isuzu KB 1364
10. Ford Figo 1 247
     

Medium Trucks and Vans:

1. Isuzu N-Series 227
2. Mercedes-Benz Sprinter: 179
3. Hino 300 Series 140
    

Heavy Trucks:

1. UD Trucks UD-H 169
2. Hino 500 Series 116
3. Isuzu F-Series 99
    

Extra-Heavy Trucks:

1. Mercedes-Benz F-L Argosy 146
2. Mercedes-Benz Axor2 109
3. Volvo FH 105

Buses:

1. MAN Bus 16
2. Scania Bus 16
3. Mercedes Bus 7