Data released by South Africa’s auto industry trade association, Naamsa, shows that new vehicle sales increased by 10.5% year-on-year in October to 57,845 units.
Naamsa said that the performance of the South African automotive sector ‘continued to surprise on the upside’ with domestic sales being supported by low interest rates, replacement demand and a highly competitive trading environment.
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Total domestic vehicle sales for the ten months of calendar 2012 remained 10.1% ahead of the corresponding ten months in 2011.
New car sales reached 41,621 units in October, 13% ahead of last year. Year to date new car sales remained 11.7% ahead of the corresponding ten months of 2011. The October 2012 new car market, for the fourth month in succession, had been supported by strong demand on the part of car rental companies with the car rental industry accounting for 18.4% of total sales, Naamsa said.
Domestic vehicle sales remain on track to post 2012 growth of around 10%. Negative factors that could influence the new vehicle market over the balance of the year and in 2013 include rising inflationary pressures despite subdued economic growth as well as the impact of currency weakness on vehicle prices.
Vehicle exports registered a decline of 3.3% in October due to the impact of a transport sector strike. Year to date export sales remained 2% below the corresponding ten months of 2011, mainly due to the softening of demand from Europe resulting from the recession in the Eurozone area. The momentum of vehicle exports was however expected to improve over the balance of the year and particularly in 2013 as various export programmes were ramped up and with exports of light commercial vehicles expected to increase substantially in 2013, Naamsa said.
