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- Strong sales to rental and government market boosts month
- Exports maintain strong growth
|June 2011||June 2010||% change (2011 vs. 2010)||% change (year to date)|
|Total market||44 880||39 874||+12.6%||+15.7%|
|Passenger market||31 440||26 794||+17.3%||+19.8%|
|Exports||25 295||20 447||+23.7%||+24.1%|
New vehicle sales recorded a jump of nearly 13% in June 2011, in comparison to June 2010, as sales to government and rental companies bolstered the market. In total the National Association of Automobile Manufacturers of South Africa (Naamsa) recorded the sale of 44 880 units, which is 5 006 units better than the same month last year.
“It was a month of mixed messages, but overall sales remained promising,” says Dr Johan van Zyl, President and CEO of Toyota South Africa Motors (TSAM) and a Managing Officer of Toyota Motor Corporation.
“The passenger vehicle segment, when adjusted for seasonal fluctuations, recorded its second strongest month of the year, while the light commercial vehicle segment, using the same criteria, recorded its second lowest sales month for the year.”
Passenger vehicle sales continue to be fuelled by the significant growth in the entry level market. This market segment already constitutes 45% of the total passenger vehicle market and is expected to continue growing as more people purchase smaller vehicles following the economic downturn of 2008 and vehicle options in this segment continue to increase. The Toyota Aygo, Toyota’s new entry level A-segment hatch, is a prime example of the growth in this segment, with 297 units retailed in June.
“We find that more and more people are returning to showrooms to replace old vehicles. The normal replacement cycle was somewhat disrupted during the tough economic times of preceding years and we now find that people who have postponed the replacement of their existing vehicles are now doing so,” says Dr Van Zyl.
The new vehicle market is also supported by increased purchases from rental companies (up 128.6% year on year) as they return to normal seasonally bound purchases after the unusual purchase pattern for the 2010 Soccer World Cup. Deliveries on government tenders have also increases in step with the start of the usual tender delivery season.
“Toyota South Africa Motors continues to feel the effect of the March 11 tsunami in Japan on the availability of certain imported vehicles,” says Dr Van Zyl. This had very little effect on our locally produced Corolla, Fortuner and Hilux products, but has delayed the delivery of other highly popular products such as the Quantum, Ses’fikile and Yaris Zen.”
Vehicle exports have grown with the growth in the local vehicle market. Total exports surpassed the 25 000 unit mark in June (25 295 units), which points to a growth of 24.1% for the year to date.
“We have now passed the half year mark and expect that the year on year growth to date of 15.7% can be sustained to achieve a full year sales target of around 570 000 units,” says Dr Van Zyl.