Figures released by the National Association of Automobile Manufacturers of South Africa (NAAMSA) and produced in association with Response Group Trendline show that new vehicle sales in November reached 28,424 units, 11.2% down on the same month last year. However, NAAMSA said that the drop was largely expected, as year-ago sales were boosted by pre-emptive buying, in anticipation of price increases resulting from rand currency depreciation.
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New car sales held up well in November, turning out just 1.4% down on last year, at 19,579 units. However, light commercial vehicle sales fell more sharply on the back of higher interest rates and price increases. Sales of new light commercial vehicles, ‘bakkies’ (pick-ups) and minibuses reached 7,650 units in November, a drop of 30% on last year.
In the cumulative Jan-Nov period, passenger car sales reached 215,791 units, 2.6% below the same period of last year. The cumulative figure for all vehicles was 326,153 units, 3.8% off last year’s pace.
NAAMSA said in a statement: “On balance, new vehicle sales during 2002 had exceeded earlier industry expectations. In the short to medium term, the industry’s domestic trading environment was expected to remain challenging as the market continued to consolidate above average new vehicle price increases year to date and as vehicle buyers adjusted to the higher vehicle financing costs. In the longer term, prospects of reduced inflationary pressures on the back of the stronger exchange rate and the likelihood of interest rate reductions – should serve to create a positive basis for new vehicle sales.”
