Figures from the National Association of Automobile Manufacturers of South Africa (NAAMSA) show a first quarter 21% aggregate increase in vehicles sold to 81,450 units.
Combined commercial vehicle sales during the first quarter of 2010 at 39,446 units were up 9.6%.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A statement from NAAMSA notes: “The latest sales figures confirm the industry is in the process of emerging from the extremely severe recession in the domestic automotive market, which started in mid-2006 and lasted through the end of 2009.
“However, the improvement should be seen in the context of the historically low base in the first quarter of 2009 when sales were particularly depressed as a result of the uncertainty arising from the global financial and economic crisis.”
NAAMSA adds improvement in consumer sentiment and business confidence during 2010, coupled with a cumulative 5.5% decline in interest rates from the end of 2008, should improve the financial position of households and contribute towards an underlying improvement in the growth of vehicle sales in coming months.
Additionally, the 2010 football World Cup has boosted demand from the car rental industry, while reduced cost pressures from the “exceptionally strong” Rand should facilitate stable new vehicle pricing for some time.
NAAMSA estimates 2010 domestic sales are expected to improve from the 395,000 in 2009 to around 451,000 in 2010 – an increase of around 14%.
The body notes factoring in the expected improvement in domestic sales, together with anticipated growth in exports, that domestic production of vehicles in South Africa during 2010 is expected to rise from 374,000 vehicles produced in 2009 to around 443,000 units projected for 2010 – an increase of around 18.4%.
