Car sales decline in November

"November 2014 new car sales at 33 278 showed a decline of 845 cars or a fall of 2.5% compared to the 34 123 new cars sold in November last year," it said in a statement.

"Some consolidation in the new car market had been expected following the exceptionally strong sales recorded during the month of October 2014 when 40 663 new cars had been sold."

There was a marginal improvement in industry sales in November with 51 098 vehicles being sold. This was a 0.09% increase from the 50 630 vehicles sold in November last year.

Ongoing pressure

However, in October this year total industry sales stood at 59 380 vehicles.

The November industry export sales improved to 28,021 vehicles, up by 9.9% from last year.

"The latest monthly new car market suggested ongoing pressure at retail dealer level," said Naamsa.

"Subdued economic growth, past increases in interest rates and above-inflation new vehicle price rises, results in a difficult trading environment, particularly at franchise dealer level."