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Johannesburg - New vehicle sales improved by 30% year-on-year in November, the National Association of Automobile Manufacturers of SA (Naamsa) said on Thursday.
"Assisted by one additional sales day relative to the same month last year, aggregate industry sales at
44 371 units had registered an improvement of 10 136 vehicles or 29.6% compared to the 34 235 vehicles sold during the corresponding month in 2009," Naamsa said.
This was driven by strong retail business, specifically in the new car segment.
Out of the total Naamsa reported industry sales figure of 38 172 vehicles, 82% represented dealer/retail sales.
This was followed by 7% each to the government and the car rental industry, and 4% to industry
corporate fleet sales.
Aggregate industry new car sales improved by 29% in November compared to the same month in 2009.
However, when compared to October 2010 sales, they declined 4%.
"This was probably due to the lagged impact and cost-raising effect of the new car emissions tax which
had increased new car prices, on average, by approximately 3%," Naamsa said. The carbon emissions tax came into effect in September.
Sales of industry new light commercial vehicles, bakkies and minibuses showed an "encouraging improvement" in November of 28%, compared to the corresponding month last year.
On a year-to-date basis, light commercial vehicle sales reflected an improvement of 13%.
The medium and heavy truck segments showed strong gains, with medium commercial vehicles growing 48% compared to November 2009.
Sales of heavy trucks and buses grew 54% compared to the corresponding month last year.
"The strong recovery in sales of heavy and extra heavy trucks in recent months indicated renewed fixed investment momentum in the economy," Naamsa said.
Aggregate export sales grew well, as manufacturers recovered from the loss of production due to strikes in August and September.
New vehicle exports registered their highest monthly total for the year at 28 550 units. This was a 24% improvement compared to the corresponding month last year.
"During the first quarter of 2011, it was anticipated that vehicle manufacturers would continue to boost
output to make up for the loss of production as a result of strike action in the vehicle and component
sectors during August and September 2010."
Naamsa expected new vehicle sales to do well next year, given the 6.5% decline in interest rates over the past two years, improved new vehicle affordability, the gradual improvement in finance approval rates, pent-up replacement demand and the introduction of new models.
"New vehicle sales over the medium term would remain a function of the performance of the domestic economy and, in the case of export sales, the sustainability of the recovery in the global economy."
Naamsa expected new car sales to improve by between 7.5% and 10% in volume.
"New commercial vehicle sales, on the back of higher projected economic growth, could rise by up to 15%."
"Assisted by one additional sales day relative to the same month last year, aggregate industry sales at
44 371 units had registered an improvement of 10 136 vehicles or 29.6% compared to the 34 235 vehicles sold during the corresponding month in 2009," Naamsa said.
This was driven by strong retail business, specifically in the new car segment.
Out of the total Naamsa reported industry sales figure of 38 172 vehicles, 82% represented dealer/retail sales.
This was followed by 7% each to the government and the car rental industry, and 4% to industry
corporate fleet sales.
Aggregate industry new car sales improved by 29% in November compared to the same month in 2009.
However, when compared to October 2010 sales, they declined 4%.
"This was probably due to the lagged impact and cost-raising effect of the new car emissions tax which
had increased new car prices, on average, by approximately 3%," Naamsa said. The carbon emissions tax came into effect in September.
Sales of industry new light commercial vehicles, bakkies and minibuses showed an "encouraging improvement" in November of 28%, compared to the corresponding month last year.
On a year-to-date basis, light commercial vehicle sales reflected an improvement of 13%.
The medium and heavy truck segments showed strong gains, with medium commercial vehicles growing 48% compared to November 2009.
Sales of heavy trucks and buses grew 54% compared to the corresponding month last year.
"The strong recovery in sales of heavy and extra heavy trucks in recent months indicated renewed fixed investment momentum in the economy," Naamsa said.
Aggregate export sales grew well, as manufacturers recovered from the loss of production due to strikes in August and September.
New vehicle exports registered their highest monthly total for the year at 28 550 units. This was a 24% improvement compared to the corresponding month last year.
"During the first quarter of 2011, it was anticipated that vehicle manufacturers would continue to boost
output to make up for the loss of production as a result of strike action in the vehicle and component
sectors during August and September 2010."
Naamsa expected new vehicle sales to do well next year, given the 6.5% decline in interest rates over the past two years, improved new vehicle affordability, the gradual improvement in finance approval rates, pent-up replacement demand and the introduction of new models.
"New vehicle sales over the medium term would remain a function of the performance of the domestic economy and, in the case of export sales, the sustainability of the recovery in the global economy."
Naamsa expected new car sales to improve by between 7.5% and 10% in volume.
"New commercial vehicle sales, on the back of higher projected economic growth, could rise by up to 15%."
