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SA's favourite car riding high

Aug 08 2010 12:44 Ingé Lamprecht

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Johannesburg - An unprecedented demand for vehicles offering good value for money, a gap that competitors have left in the market – and exceptional timing.

These are some of the ingredients of the successful sales formula for Volkswagen’s Polo Vivo.

In July this vehicle was, for the fourth successive month after its March release, the top seller in the passenger vehicle division.

Figures announced by the National Association of Automobile Manufacturers (Naamsa) in the past week show that in July 2 176 Vivos were sold, 26% more than in June.

Econometrix economist Tony Twine said the Vivo has filled the gap left by the Citi Golf after the decades-long production of the Citi was halted.

The fact that the Vivo has more modern technology and an updated appearance certainly counts in its favour, said Twine.

The so-called sub-B category of vehicles – which includes the Vivo, Ford Figo, Citi Golf and the Toyota Tazz (the latter two are no longer produced) – has recently experienced unprecedented sales growth.

In the first seven months of this year this segment grew by 302.6% compared with the same period last year.

Vehicles competing in this segment are of the same size as vehicles in the B category (such as the Toyota Yaris and Polo), but their prices are lower and they have less advanced technology.

Toyota does not currently have a vehicle that competes in this specific segment.

According to Twine the recalls that have bedevilled Toyota in the recent past have harmed the group's reputation, probably unfairly in South Africa, and this has created opportunity in the market for competitors.

McCarthy chief executive Brand Pretorius said the timing of the Volkswagen Polo Vivo launch was very good.

He reckoned that sales had benefited from demand from car rental companies shortly before the World Cup soccer tournament.

He pointed out that the Vivo’s good resale value also made it a fine choice for rental companies, which keep their vehicles for nine to 13 months.

- Sake24.com

For business news in Afrikaans, go to www.sake24.com.

 
 
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