ECONOMY
New vehicle sales continue to surge
Posted Wed, 05 Jul 2006
Growth in most new vehicle sales continued to impress in June, the National Association of Automobile Manufacturers of South Africa (Naamsa) said on Tuesday. New vehicle sales had shown some further consolidation, but the new car market and the heavy truck segment had maintained their impressive growth momentum, the association said in a statement. New vehicle sales during June of 56 952 units was an improvement of 6917 vehicles, or 13.8 percent, compared to the 50 035 sold during the corresponding month last year. Sales in all segments had registered an improvement compared to the same month last year. "June 2006 new car sales, despite the interest rate increase early in the month and stock shortages experienced by some motor vehicle manufacturers, represented by far the strongest June month sales performance on record and reflected an improvement of 6016 new cars, or 18.7 percent, (over) the 32 113 new cars sold during June, 2005." For the first half of
2006, the new car market, in terms of new car sales reported through Naamsa, remained 18.8 percent ahead of the corresponding six months last year. Taking into account the 4276 new cars retailed, but not reported in detail through Naamsa, the new car market had reached a total of 42 405 units. Sales of new light commercial vehicles — bakkies and minibuses — recorded a relatively modest improvement of 396 vehicles, or 2.6 percent, compared to the 15 295 unit sales in June last year. On a year-to-date basis, light commercial vehicle sales remained 14.6 percent ahead of the corresponding six months of 2005. Sales of vehicles in the medium and heavy truck segments of the industry reflected a somewhat mixed performance, Naamsa said. The June 2006 sales of medium commercial vehicles at 1316 units and sales of heavy trucks and buses at 1816 units, showed an improvement of 100 units, or 8.2 percent, in the former and 405 units, or 28.7 percent, in the latter. On
a year-to-date basis, medium commercial vehicles were 18.1 percent ahead of the corresponding six months of 2005, and heavy commercial vehicles and buses 25.1 percent ahead. The medium and heavy segments should continue to benefit from strong fixed investment and infrastructural development. Vehicle export sales for the first five months of 2006 at 67 471 vehicles was an improvement of 26 556 units, or 64.9 percent, compared to the 40 915 exported during the first five months of 2005. While demand for new cars and commercial vehicles remained fundamentally strong, some further consolidation was anticipated during the second half of the year on the back of recent and possible further increases in interest rates, higher energy and vehicle operating costs and pressure on new vehicle pricing. For the balance of the year, sales of new motor vehicles should continue to grow, but at a slower pace — particularly since future comparisons would be against the sharply higher
sales levels recorded during the second half of last year, Naamsa said.
Sapa
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