The rate of decline in South Africa’s car market declined significantly in June compared with previous months, raising hopes that the market is stabilising.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
South Africa’s National Association of Automobile Manufacturers of South Africa (NAAMSA), said that new vehicle sales for June reached 30,065 units – a decline of 23.7% on last year.
However, it said the rate of decline in the new car sales cycle had slowed during the month of June and over recent months giving rise to optimism that the new car market would start to bottom out in coming months.
New car sales in June were put at 19 035 units, a drop of 17.4% on the same month last year. Car sales in May were 27% down on the previous year.
There was continuing gloomy news on exports. Lower levels of demand in South Africa’s major export markets had contributed to a huge decline in the number of vehicles exported by the industry during June.
Aggregate export sales of 11,760 vehicles in June were 52.5% below last year’s pace.
NAAMSA noted that all sectors of the South African automotive industry – vehicle retail, auto parts manufacturing and vehicle producers – continued to experience ‘severe and unprecedented sustainability challenges’.
It said that while most current indicators continue to reflect an economy under pressure, there were signs of ‘some improvement and/or consolidation’.
NAAMSA said it anticipated that new vehicle sales volumes would start to consolidate at current levels over coming months with an improvement in domestic sales materialising towards the end of 2009 and into 2010.
However, the trade body added that given current worldwide vehicle production overcapacity, a recovery in sales to export markets was ‘unlikely to eventuate until later in 2010 or even 2011’.
