Johannesburg - Car rental companies stocking up ahead of the holiday season have helped bolster new car sales in October, which have maintained strong recovery so far this year.
Car sales increased by 22.2% in October compared to the same month last year, according to data released on Tuesday by the National Association of Automotive and Vehicle Manufacturers of SA (Naamsa).
The number of cars sold in the month was 39 384 vehicles and nearly a quarter of these were sold to the car rental industry.
"The market was supported on the one hand by demand from car rental companies, but was held back by the lingering impact on supply as a consequence of the strike in August and September,” said Mike Glendinning, director of sales and marketing at Volkswagen Group South Africa.
Countrywide strikes by the component makers' association and retail motor industry earlier this year brought the industry to a near standstill, resulting in supply shortages and production stoppages at most major car makers.
Because of this, overseas supply contracts were disrupted in September. However, the most recent Naamsa figures show an encouraging recovery in exports.
The aggregate number of exports in October increased by 30.5% compared to the same month last year. On a month-on-month basis, vehicle exports more than doubled.
The top selling car in the South African consumer market was once again Volkswagen South Africa's Polo Vivo, which retails for just over R100 000 and has been a market leader in the entry level market since its launch in March.
The entry level passenger market is the fastest-growing segment in the country, and has increased by over 400% so far this year.
Car sales are expected to moderate in the last two months of 2010, with December a traditionally quiet month in terms of sales.
“The new passenger car market looks set to achieve growth of 28% to 30% in 2010 above last year's levels,” said Glendinning.
"Consumer confidence is higher and, combined with the lowest interest rates since 1979, November sales should perform well before the traditionally slow holiday season,” said Dean Stoneley, Ford Motor Company SA vice-president of marketing, sales and service.
- Fin24.com
Car sales increased by 22.2% in October compared to the same month last year, according to data released on Tuesday by the National Association of Automotive and Vehicle Manufacturers of SA (Naamsa).
The number of cars sold in the month was 39 384 vehicles and nearly a quarter of these were sold to the car rental industry.
"The market was supported on the one hand by demand from car rental companies, but was held back by the lingering impact on supply as a consequence of the strike in August and September,” said Mike Glendinning, director of sales and marketing at Volkswagen Group South Africa.
Countrywide strikes by the component makers' association and retail motor industry earlier this year brought the industry to a near standstill, resulting in supply shortages and production stoppages at most major car makers.
Because of this, overseas supply contracts were disrupted in September. However, the most recent Naamsa figures show an encouraging recovery in exports.
The aggregate number of exports in October increased by 30.5% compared to the same month last year. On a month-on-month basis, vehicle exports more than doubled.
The top selling car in the South African consumer market was once again Volkswagen South Africa's Polo Vivo, which retails for just over R100 000 and has been a market leader in the entry level market since its launch in March.
The entry level passenger market is the fastest-growing segment in the country, and has increased by over 400% so far this year.
Car sales are expected to moderate in the last two months of 2010, with December a traditionally quiet month in terms of sales.
“The new passenger car market looks set to achieve growth of 28% to 30% in 2010 above last year's levels,” said Glendinning.
"Consumer confidence is higher and, combined with the lowest interest rates since 1979, November sales should perform well before the traditionally slow holiday season,” said Dean Stoneley, Ford Motor Company SA vice-president of marketing, sales and service.
- Fin24.com