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Johannesburg - Vehicle manufacturers have reacted to the latest Naamsa data which showed car sales were down 30.3% from a year ago, after a 19.7% y/y decline in July.
Jacques Brent, head of sales and marketing at FMCSA said: "The light commercial vehicle segment took the brunt of the pressure with a 9% decline versus July 2008 and a massive 43% decline on the same month last year.
"Initially, the passenger car market bore the burden of a depressed sales environment but in recent months the passenger segment has steadied somewhat.
The light commercial vehicle segment, that has rallied well and buoyed the new vehicle market for most of 2007 & 2008, has began to feel the impact of economic pressures as business gets more directly affected.
"The staid economic conditions continue to prevail and stunt the growth of the automotive sector with the trend likely to continue for the foreseeable future. Having said that we have some exciting products planned for introduction during the last quarter of 2008 and expect a very positive response to these introductions."
Head of sales and marketing for GMSA Malcolm Gauld added: "We expect the retail market to continue to weaken, albeit at a slower rate than in recent months, primarily due to interest rates being held at the current level by the central bank at the most recent policy committee meeting. A degree of relief is expected for cash-strapped consumers as the pump price of most fuel types come down this week.
"This relief may well be short lived as producer price inflation - currently running at over 13% - is set to impact prices at the factory gate and will likely continue to feed the inflationary cycle. The uncertainty associated with these variables is causing many consumers to adopt a wait-and-see attitude which has resulted in a considerable slowing in new vehicle demand."
VWSA sees the sector remaining under pressure. Its sales and marketing director Mike Glendinning said: "Despite the Reserve Bank's decision to keep interest rates unchanged - a development that has come as a welcome relief for households and business alike - the outlook for the demand driven sectors of the economy remains tough for the second half of 2008, as the impact of tight monetary policy, financial pressure on households and generally weaker economic conditions come into full effect.
"Under these circumstances demand for new passenger cars is set to remain under pressure for the remainder of 2008 and into 2009."
- I-Net Bridge