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NAAMSA MEDIA RELEASE : COMMENT ON THE JUNE , 2011 NEW VEHICLE SALES STATISTICS: EMBARGO TIME : 11H00, MONDAY, 4TH JULY, 2011
In amplification of the new vehicle sales statistics for the month of June, 2011 – released today by the National Association of Automobile Manufacturers of South Africa (NAAMSA) – the Association commented that the June new vehicle sales reflected a mixed performance with new car sales and new truck sales showing relatively strong growth but light and medium commercial vehicle sales reflecting weakness. June, 2011 aggregate industry domestic sales had improved by 5006 units or 12,6% to 44880 vehicles from 39874 vehicles sold during June last year. Total domestic sales for the first half of calendar 2011 remained 15,7% ahead of the corresponding six months in 2010. This was down from the 16,4% year on year growth for the first five months of the year. June, 2011 export sales at 25295 vehicles had registered good growth rising by 4848 units or 23,7%.
Overall, out of total June, 2011 industry reported sales of 44880 vehicles, 85,7% or 38462 units represented dealer sales, 7,8% represented sales to the car rental industry, 3,6% represented industry corporate fleet sales and 2,9% sales to government.
Total new car sales during June, 2011 had exceeded expectations and at 31440 units showed an improvement of 4646 new cars or 17,3% compared to the 26794 new cars sold during June, 2010. The new car market had to date benefitted from the relatively low interest rate environment, increased lending by financial institutions and pent up replacement demand. Declining new car prices, in real terms, had also supported demand.
Sales of industry new light commercial vehicles, bakkies and minibuses at 10998 units during June, 2011 reflected a reduction of 202 units or a fall of 1,8% compared to the 11200 units sold in the corresponding month last year. For the first six months of 2011, new light commercial vehicle sales were ahead by only 5,1% on the corresponding period last year.
Sales of vehicles in the medium and heavy truck segments of the industry reflected a mixed performance and at 734 units and 1708 units, respectively, had recorded a marginal decline in the case of medium commercials vehicle compared to a gain of 563 units or 49,2%, in the case of heavy trucks and buses – compared to the corresponding month last year. At the half way mark in 2011, total aggregate sales of medium, heavy commercials and buses remained 22,1% ahead of the corresponding six months of last year. The latest figures suggested positive fixed investment associated with major infrastructural projects.
Exports of South African produced motor vehicles during June, 2011 at 25295 units reflected an increase of 4848 vehicles or 23,7% compared to the 20447 vehicles exported during June last year. The momentum of new vehicle exports remained positive.
Whilst the South African economy was expected to achieve a modestly higher growth rate of around 3,8% in 2011, there were indications that the macro environment going forward was likely to become less supportive. The decline in the purchasing managers index, for the third successive month, as well as recent declines in the Reserve Bank’s leading indicator, suggested a slower pace of expansion over the medium term. Significantly higher than inflation administered price increases, rising energy costs and the impending introduction of freeway toll charges in Gauteng would impact negatively on consumer disposable income at the expense of demand for durable goods. Together with expectations of rising interest rates from the beginning of 2012, consumer demand generally was likely to come under pressure. These developments were expected to affect domestic new vehicle sales over the medium term. Export sales should however continue to show good growth but remained dependant on the performance of the global economy.
Sound macro economic management required consistent policies that promoted investment necessary and essential for growth and employment creation. Statements about nationalization and expropriation were counter productive and damaging in that they undermined South Africa’s future economic growth and employment creation potential. NAAMSA supported other business organisations in adopting a more proactive stance on the importance of tried and trusted and successful economic policies.
NAAMSA OFFICES: PRETORIA 4th July, 2011