South African new vehicle sales fell by 19.7% year-on-year in July according to data released by NAAMSA. New car sales were off 19.1% on last year’s pace at 26,015 units under the impact of higher interest rates and an economic slowdown in South Africa.
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“Despite the fact that July was traditionally a strong month from a seasonal perspective, the daily sales rate during July 2008 had continued to hover around the lowest levels experienced over the past four years,” NAAMSA said in a statement.
The downturn in light commercial sales had accelerated further during July. Sales of NAAMSA new light commercial vehicles, bakkies and minibuses at were 13,164 units – a decline of 23,5% on the same month last year.
However, NAAMSA said vehicle exports were at record levels during July, with 28,269 new vehicles exported – 85% ahead of last year. For the first seven months of 2008, export sales were up 59.5% on the same period last year.
NAAMSA projections showed that during 2008 the automotive industry was on target to achieve a trade surplus for the first time since 1995.
However, NAAMSA said that for the balance of 2008 new vehicle sales in the domestic market would remain under severe pressure as a result of the cumulative impact of interest rate rises, inflationary pressures, high levels of personal debt and the slowdown in economic activity.
