Johannesburg - The decline in South African new vehicle sales continued unabated in August, with sales reported through the
National Association of Automobile Manufactures of South Africa (Naamsa) down 30.3% from a year ago, after a 19.7% y/y decline in July.
Domestic new vehicles sales for August - at 40 395 units - registered a significant decline of 17 575 units compared with the 57 970 vehicles sold during the corresponding month last year.
Naamsa pointed out however that the industry's August, 2008 sales performance should be seen in relation to the fact that August last year had represented a relatively high base in that it had the highest monthly number of new vehicles sold during 2007.
Overall, out of the total Naamsa reported industry sales of 40 395 vehicles, 75.1% or 30 345 units represented dealer/retail sales, 13.9% represented sales to the car rental industry, 6.6% sales to the government and 4.4% into Naamsa member company fleets.
New car sales at 25 304 units reflected a decline of 12 408 or 32.9% compared to the 37 712 new cars sold during August, 2007. Factoring in the new car sales not reported in detail, the year-on-year decline had amounted to 13 839 units or a fall of 32.9%, Naamsa said.
Seasonally, August was normally a strong month for new car sales, driven by demand from car rental companies. Despite this, the daily sales rate during August, 2008 had continued to fluctuate around the lowest levels experienced over the past four years, it added.
The downturn in light commercial sales also accelerated further during August. Sales of Naamsa new light commercial vehicles, bakkies and minibuses at 12 084 units during August, 2008 reflected a decline of 4 826 units or 28.5% compared to the 16 910 unit sales during the corresponding month last year.
Under pressure
Taking account of the light commercial vehicles sales reported by the AMH Group, the year on year decline amounted to 5 302 units or 29.2%.
Sales of vehicles in the medium and heavy truck segments of the
industry continued to reflect a mixed picture during August, 2008 and at 969 units and 2 038 units, respectively, recorded a substantial decline of 419 units or 30.2%, in the case of medium commercials, versus a modest gain of 78 units or 4%, in the case of heavy trucks and buses - compared to the
corresponding month last year.
During August, 2008 the industry's new vehicle exports maintained their strong momentum. A total of 27 078 new vehicles were exported. This represented an improvement of 11 498 vehicles or 73.8% compared to the 15 580 vehicles exported during August last year.
With two thirds of 2008 accounted for, export sales reflected an impressive year on year improvement of 61.5%. Vehicle exports for 2008 as a whole are projected to reach 285 000 units.
Naamsa said that for the balance of 2008, in the domestic market, new vehicle sales were likely to remain under pressure as a result of the cumulative impact of interest rate rises, inflationary pressures, high levels of personal debt and lower economic activity levels.
The South African economy - principally as a result of current and projected major investment projects - remained in a relatively good position to withstand the current global slowdown and extreme financial market volatility.
Existing vehicle export contracts would continue to lend support to domestic vehicle and component manufacturing activities, it said.
- I-Net Bridge