Positive trend in new vehicle sales gives hope, says NAAMSA
Aggregate annual domestic sales volumes could improve modestly by around 3.5 percent in volume terms.
COMMENTING on new vehicle sales statistics for February 2017, released recently, the National Automobile Association of South Africa (Naamsa) said the positive trend in new vehicle sales had been maintained, characterised by noteworthy gains in light commercial vehicle sales, as well as medium and heavy commercial vehicle sales.
The consumer driven new car market however registered a decline.
Aggregate new vehicle sales at 48 113 units were virtually unchanged from the 48 144 vehicles sold in February last year.
Similarly, export sales were also virtually unchanged from last year, and reflected an increase of 65 vehicles or a gain of 0.2 percent compared to the 29 323 vehicles exported in February last year.
Overall, out of the total reported industry sales of 48 113 vehicles, an estimated 38155 units or 79.3 percent represented dealer sales, 13.3 percent represented sales to the vehicle rental industry, 4.2 percent to government and 3.2 percent to industry corporate fleets.
The February 2017 new car market at 31 400 units reflected a decline of 1 454 cars or a fall of 4.4 percent compared to the 32 854 new cars sold in February last year.
The car rental industry again made a strong contribution and accounted for 19.1 percent of new car sales in February 2017.
The rental industry’s share was understated since it excluded BMW SA and MBSA car rental sales.
Domestic sales of new light commercial vehicles, bakkies and mini buses at 14 416 units during February 2017 reflected a significant improvement of 1 277 units or a gain of 9.7 percent compared to the 13 139 light commercial vehicles sold during the corresponding month last year.
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Sales of vehicles in the medium and heavy truck segments of the industry also recorded welcome gains and at 705 units and 1 592 units, respectively, reflected an increase of 55 units or 8.5 percent in the case of medium commercial vehicles and, in the case of heavy trucks and buses, an improvement of 91 vehicles or a gain of 6.1 percent.
New vehicle exports were at the lower end of expectations and at 29 388 units exported during February 2017 reflected a marginal increase of 65 units.
This was an improvement of 0.2 percent compared to the 29 323 vehicles exported in February last year.
Naamsa anticipates that the momentum in vehicle exports would increase over the medium term.
Domestically, key indicators such as the latest purchasing managers’ index (PMI) and the Reserve Bank’s leading indicator – which had recorded an extraordinary improvement for five consecutive months – heralded the possibility of an improvement in South Africa’s medium term economic outlook.
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In addition, the easing of drought conditions and projected global economic growth as well as continuing Rand strength should benefit new vehicle pricing which should contribute positively to sales of new motor vehicles over the medium term.
Export sales were expected to benefit from the projected improvement in global economic conditions.
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