The turnaround in the new-vehicle market, anticipated for the second half of the year has failed to materialised, says the National Association of Automobile Manufacturers of South Africa (Naamsa).
The current low growth environment and an increase in the country’s fiscal risks do not bode well for the foreseeable future either, it adds.
New-vehicle sales in October inched up by 122 units, or 0.2%, to 51 978 units, compared with the same month last year.
New-passenger car sales increased by 2.5%, to 35 904 units.
The car rental industry accounted for 20.3% of new-vehicle sales in September.
Sales of new bakkies, minibuses and vans, at 13 366 units, fell by 5.9%.
Sales of medium trucks, at 839 units, increased by 8.1%.
Sales of new heavy trucks and buses gained 1.7%, to reach 1 869 units.
October export sales, at 41 277 vehicles, jumped by 21%.
Naamsa says vehicle exports for the first ten months of the year, at 338 955 units, are the third-highest yearly level on record, with two months remaining in 2019.
“Prospects for domestic new-vehicle sales will continue to be affected by the current depressed macro-economic environment,
pressure on household disposable income, as well as low business and consumer confidence,” states Naamsa.
“Demand for new vehicles, particularly the new-passenger car market will, therefore, continue to remain under pressure over the medium term.”
Top-selling cars, bakkies and vans in October:
1. Toyota Hilux 4 377
2. VW Polo Vivo 2 937
3. VW Polo 2 098
4. Ford Ranger 1 806
5. Toyota Hi-Ace 1 738
6. Isuzu D-Max 1 372
7. Toyota Corolla Quest 1 313
8. Ford EcoSport 1 265
9.VW T-Cross 1 132
10. Toyota Yaris 1 065
Top Exporters in October:
1. Volkswagen Group South Africa 12 182
2. Mercedes-Benz South Africa 9 477
3. Ford Motor Company of Southern Africa 8 136