NAAMSA: New vehicle sales for August continued to show resilience

SEPTEMBER 2, 2014

According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), aggregate new vehicle sales for August declined by a marginal 1.45 year on year, while exports sales staged a strong recovery at 18.5.

"August 2014 aggregate new vehicle sales at 55 722 vehicles had registered a modest decline of 767 vehicles or a fall of 1.4% compared to the 56 489 vehicles sold in August last year. The August, 2014 export sales at 25 027 units reflected a substantial improvement of 3 911 vehicles or a gain of 18.5% compared to the 21 116 vehicles exported in August last year," the association said in a statement.

NAAMSA said, "overall, out of the total reported Industry sales of 55 722 vehicles, 79.8% represented dealer sales, 13.1% represented sales to the vehicle rental Industry, 3.6% to Industry corporate fleets and 3.5% to government."

It also said the new passenger car market was bouyed by another strong contribution by the car rental industry, but reflected a fall of 2.7% year on year.

"Assisted by another strong contribution by the car rental industry, the new car market during August, 2014 had performed relatively well and at 37 953 units reflected a decline of 1 047 vehicles or a fall of 2.7% compared to the 39 000 new cars sold in August last year," NAAMSA said.

"Industry new vehicle exports during August, 2014 at 25 027 vehicles had registered a substantial improvement of 3 911 units or a gain of 18.5% compared to the 21 116 vehicles exported in August last year."

The association said the outlook for the SA automotive sector for the balance of 2014 will remain challenging.

"Relatively low economic growth, recent increases in interest rates and above inflation new vehicle price increases – would combine to dampen new vehicle sales momentum. The domestic market was expected to register a decline, in volume terms, of between 4% and 5% compared to 2013," NAAMSA said.