NAAMSA comment on 2013 South African new vehicle sales statistics

01 Feb 2016 | Admin Author

NAAMSA COMMENT ON THE JUNE, 2013 SOUTH AFRICAN NEW VEHICLE SALES STATISTICS

In amplification of the new vehicle sales statistics for the month of June, 2013 – released today for public consumption on the website of the Department of Trade & Industry - the Association commented that the June, 2013 new vehicle sales had largely been in line with Industry expectations.

The automotive sector had registered modest growth on a year to date basis. In the event, aggregate Industry sales of 53 562 units for June, 2013 reflected an increase of 3.3% or 1 690 vehicles from the 51 872 units sold in June last year. Export sales had registered a surprising decline falling by 10.6% in volume terms.

Overall, out of the total reported Industry sales of 53 562 vehicles, 45 467 units or 84.9% represented dealer sales, 8.0% represented sales to the vehicle rental Industry, 4.5 % to Industry corporate fleets and 2.6% to government.

During June, 2013 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 at 13 729 units during June, 2013 reflected an increase of 305 units or 2.3% compared to the 13 424 light commercial vehicles sold during the corresponding month last year.

Sales of vehicles in the medium and heavy truck segments of the Industry at 1 040 units and 1 736 units, respectively, had recorded an increase of 177 units or 20.5% in the case of medium commercial vehicles, and an increase of 64 units or 3.8% in the case of heavy trucks and buses, compared to the corresponding month last year.

Industry new vehicle exports during June, 2013 at 24 203 vehicles had registered an unexpected decline of 2 864 units or 10.6% compared to the 27 067 vehicles exported in June last year. The Industry remained on target for new vehicle export growth of around 15%, in volume terms, for 2013.

As was indicated previously, the outlook for the automotive sector for the balance of the year looks less promising than at the beginning of 2013. Domestically, expectations of subdued GDP growth and above-inflation new vehicle price increases – as a result of the sharply weaker exchange rate and the April 2013 increase in CO2 vehicle emission taxes on new cars and certain categories of new light commercials – will contribute to a more difficult trading environment. However, the lower interest rate environment should continue to lend some support to the domestic market. Other positive factors include replacement demand, the highly competitive trading environment, ongoing attractive incentives and high technology new model introductions. Over the medium term, pre-emptive buying by consumers to avoid expected increases in prices of new motor vehicles, as a result of the weaker Rand, could lend additional support. Moreover, over the next four months replacement demand by car rental companies should also contribute positively.