South African car manufacturers sold 40,477 new vehicles in April, an increase of 41.1% compared with the same month last year, the national industry body said.
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Reuters said the surge took the number of vehicles sold to a record for the month of April, but the National Association of Automobile Manufacturers of South Africa (Naamsa) said it should be seen in context of depressed sales during Easter holidays in 2004.
Sales of new cars alone soared by 44.6% to 27,090 units – another all-time best performance for April, the report added.
Analysts reportedly said vehicle sales were buoyed by rising disposable income amid record-low inflation and the lowest interest rates in over two decades.
According to Reuters, Naamsa said the strong rand, which gained around 17% against the dollar last year, had continued to take its toll on exports from the sector, which comprises about 13% of South Africa’s total exports.
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By GlobalData“Overall new vehicle exports for the first three months of year fell 3.8% to 23,575 units compared with the first quarter of 2004,” Naamsa reportedly said in a statement.
But it said new government initiatives aimed at boosting exports could help the sector around the middle of year and the industry’s near-term outlook remained positive, Reuters noted.
