Photo by: Creamer Media
The National Association of Automobile Manufacturers of South Africa (Naamsa) on Thursday reported that the latest new-vehicle sales reflected a “welcome surprise” on the upside, with export sales continuing to perform “exceptionally” well.
“Exports sales had registered strong growth, reflecting a substantial improvement of 11 571 vehicles, or 53.8%, compared with the 21 519 vehicles exported in April last year, while aggregate domestic sales, at 36 794 units, showed an improvement of 266 units, or 0.7%, from the 36 528 vehicles sold in April last year,” the association said.
Overall, out of the total reported industry sales of 36 794 vehicles, an estimated 31 945, or 86.8%, represented dealer sales; an estimated 6.5% represented sales to the vehicle rental industry; about 4% went to industry corporate fleets and 2.6% to government.
The new passenger car market registered an improvement of 935 cars, or an increase of 3.9%, in April, to 24 989 units, compared with the 24 054 new cars sold in April last year.
The car rental industry accounted for 8% of new car sales in April.
Domestic sales of new light commercial vehicles, bakkies and minibuses, at 9 810 units, were down by 866 units, or 8.1%, from the 10 676 light commercial vehicles sold during the corresponding month last year.
Sales in the medium and heavy truck and buses segments of the industry performed well and, at 577 units and 1 418 units, respectively, reflected a gain of 95 vehicles or an improvement of 19.7%, in the case of medium commercial vehicles, and, in the case of heavy trucks and buses, an improvement of 102 vehicles, or a gain of 7.8%, compared with the corresponding month last year.
Naamsa stated that the momentum of vehicle exports over the course of 2019 should
increase further and industry export sales for the year could reach close to 400 000 units, compared with the record 351 139 vehicles exported last year.
The association further said that, although the Absa Purchasing Manager’s Index had increased slightly, for the first time after three successive months of decline, it still remained below the neutral 50-point-mark, which meant that factory conditions had stabilised at fairly depressed levels.
Demand for domestic new vehicles, particularly the new car market, would continue to remain under pressure in the coming months affected by numerous constraining factors.
“Consumer and business confidence levels are low, household disposable income remains under pressure, owing to rising costs of living, and lower domestic and global economic growth forecasts continue to signal moderation in new-vehicle sales.”
However, Naamsa added that constructive political and economic reforms after the country’s general election on May 8 could see an improved second-half performance in terms of new-vehicle sales.
The upward momentum on exports remains strong and industry vehicle production levels would continue to benefit from strong vehicle export sales, the association added.