AUTOMART AFRICA - AUTOMOTIVE INDUSTRY DIRECTORY | KENYA | TANZANIA | ETHIOPIA

In amplification of the new vehicle sales statistics for the month of May, 2015 – released today for public consumption on the website of the Department of Trade & Industry – Naamsa commented that domestic new vehicle sales, with the exception of light commercial vehicle sales, had registered declines compared to the corresponding month last year.  New car sales in particular had declined on a year-on-year basis, however, further strong growth in new vehicles exports had continued during the month.

In the event, May 2015 aggregate new vehicle sales at 47 868 units were down 3.2% from the 49 449 vehicles sold in May last year.  Overall, out of the total reported Industry sales of 47 868  vehicles, an estimated 40 575 units or 84.8% represented dealer sales, 6.9% constituted sales to government, 4.7% to industry corporate fleets and 3.5% represented sales to the vehicle rental industry.

The May, 2015 new car market at 31 201 units reflected a decline of 1 773 units or a fall of 5.4% compared to the 32 974 new cars sold in May last year.  Despite incentive packages to promote demand, intense competition in a difficult trading environment continued to pressurize the domestic new car market.

Domestic sales of new light commercial vehicles, bakkies and mini buses during May, 2015 at 14 182 units reflected an improvement of 309 units or a gain of 2.2% compared to the 13 873 light commercial vehicles sold during the corresponding month last year.

Sales of vehicles in the investment-driven medium and heavy truck segments of the Industry had registered declines.  Medium commercial vehicle sales at 787 units and heavy commercial vehicle sales at 1 698 units, reflected a fall of 33 units or 4.0% in the case of medium commercials, and a decline of 84 vehicles or a fall of 4.7% in the case of heavy trucks and buses – compared to the corresponding month last year.

Vehicle exports continued to gain momentum and were increasingly contributing positively to South Africa’s current account of the balance of payments.  Industry new vehicle exports at 33 411 units during May, 2015 had registered exceptionally strong growth compared to the corresponding month last year rising by 17 816 vehicles or a massive 114.2% relative to the 15 595 export sales in May, 2014.  Vehicle exports for 2015 remained on target to improve by around 25% in volume terms to an industry record export number of about 330 000 for the year.

The outlook for the industry had not changed much in recent months, however, the lower than expected new car sales might necessitate a slight downward review of the annual new car market.  At best, total aggregate industry domestic sales would match the industry’s 2014 performance.  This would require some improvement in domestic sales during the second half of the calendar year.

New vehicle industry production would continue to move upwards as a result of substantially higher export sales.

Posted on : 24 Nov,2024 | News Source : ABNews