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Johannesburg - An industry-wide strike, which brought the automotive sector to a near-standstill in September, has contributed to a significant loss in momentum in new vehicle sales and exports in South Africa.
New vehicle sales during the past month amounted to 41 875 units, according to data released on Monday by the National Association of Automotive Manufacturers SA (Naamsa).
The figure is a 16.6% improvemnt on new cars sold this time last year, when the sector was at its lowest point. However, on a month-on-month (m/m) basis there is a certain decline in growth.
During August 2010, new vehicle sales jumped a massive 36.9% year-on-year. September's sales numbers reflect a 10.5% drop in sales from the previous month.
"There is little doubt that strike action within the motor industry will have inhibited sales of vehicles manufactured locally," said Malcolm Gauld, General Motors South Africa's vice-president sales and marketing.
The National Union of Metalworkers in SA (Numsa) declared a strike at the beginning of September over wage demands. It dragged on for almost two weeks and resulted in automotive plant closures.
Strike eroded confidence in SA
Worst hit were new vehicle exports, which dipped by 10.3% in September compared to previous year and registered a significant m/m fall of 36%.
"The effect of the strike has compromised the industry's already fragile track record as a reliable supplier to international markets," said Naamsa in a statement on Monday.
Another factor that may have inflated the vehicle sales figures in August was the implementation of the carbon emissions tax on new vehicles.
The tax kicked into action at the start of September, and prompted consumers to push foward planned purchases of new cars to avoid the effective 2.5% increase in retail price.
Naamsa said that it expects the full effect of the tax to reflect in the sales figures for October and November.
Boosting sales, on the other hand, was seasonal fleeting by car rental companies ahead of the December holiday season.
"While down on what was an exceptionally buoyant month of new passenger car sales in August, the September new passenger car market performed well, supported by seasonally strong demand from rental car companies," said Mike Glendinning, Volkswagen Group South Africa sales and marketing director.
Glendinning added he is confident that the new passenger car market is still on track for close to 28% growth in 2010 over what was achieved last year, despite September's setbacks.
- Fin24.com
New vehicle sales during the past month amounted to 41 875 units, according to data released on Monday by the National Association of Automotive Manufacturers SA (Naamsa).
The figure is a 16.6% improvemnt on new cars sold this time last year, when the sector was at its lowest point. However, on a month-on-month (m/m) basis there is a certain decline in growth.
During August 2010, new vehicle sales jumped a massive 36.9% year-on-year. September's sales numbers reflect a 10.5% drop in sales from the previous month.
"There is little doubt that strike action within the motor industry will have inhibited sales of vehicles manufactured locally," said Malcolm Gauld, General Motors South Africa's vice-president sales and marketing.
The National Union of Metalworkers in SA (Numsa) declared a strike at the beginning of September over wage demands. It dragged on for almost two weeks and resulted in automotive plant closures.
Strike eroded confidence in SA
Worst hit were new vehicle exports, which dipped by 10.3% in September compared to previous year and registered a significant m/m fall of 36%.
"The effect of the strike has compromised the industry's already fragile track record as a reliable supplier to international markets," said Naamsa in a statement on Monday.
Another factor that may have inflated the vehicle sales figures in August was the implementation of the carbon emissions tax on new vehicles.
The tax kicked into action at the start of September, and prompted consumers to push foward planned purchases of new cars to avoid the effective 2.5% increase in retail price.
Naamsa said that it expects the full effect of the tax to reflect in the sales figures for October and November.
Boosting sales, on the other hand, was seasonal fleeting by car rental companies ahead of the December holiday season.
"While down on what was an exceptionally buoyant month of new passenger car sales in August, the September new passenger car market performed well, supported by seasonally strong demand from rental car companies," said Mike Glendinning, Volkswagen Group South Africa sales and marketing director.
Glendinning added he is confident that the new passenger car market is still on track for close to 28% growth in 2010 over what was achieved last year, despite September's setbacks.
- Fin24.com
