Sales of new vehicles in South Africa rose 29.1% in March, reported Reuters.

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According to The National Association of Automobile Manufacturers of South Africa (NAAMSA), sales reached 56,341 units, a monthly record.


2006 is expected to be a record year for the industry, with sales forecast to grow 15-20%.


According to Reuters, the automotive industry is the second biggest industry in South Africa’s manufacturing sector, and accounts for more than 16% of the continent’s biggest economy.


Vehicle exports for the first two months of 2006 grew by over 50% to 22,333 vehicles.

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The domestic market is currently being supported by low interest rates and a steady price environment. Longer term, government plans to invest heavily in infrastructure are expected to reduce unemployment and sustain faster growth.


New car sales were up 30.9% at 37 521 units and light commercial vehicle sales were up 24.5% at a record 16,076 units.