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New Vehicle Sales on Downward Trend
| News by Staff ReporterThis is according to the latest data from Naamsa
The National Association of Automobile Manufacturers of SA (Naamsa) on Friday said new vehicle sales in August improved by 8% year-on-year – the lowest rate in 19 months.According to Nico Vermeulen, executive director at Naamsa, new vehicle sales in August 2011 rose by 8% to 36,197 compared to the 33,523 units sold in August last year, representing the lowest year-on-year growth in 19 months.
Strong demand from the car rental industry, accounting for around 20% of total vehicle sales, had helped support new vehicle sales in August, said Vermeulen.
“The latest sales figures reflected a further decline in the growth momentum in the new car sales cycle,” Naamsa said in a statement.
For the eight months since January 2011, however, vehicle sales remain 14,5% above the corresponding eight-month period in 2010.
Locally produced car exports were seen to increase by 26,7% year-on-year in August 2011, Naamsa said, representing 24,835 units exported compared to August last year.
The association added that the reason for the low number of exports in August 2010 was due mainly to industrial action that year.
“The domestic macro environment going forward was likely to become less supportive of vehicles sales,” said Naamsa.
“Recent low numbers in the purchasing managers’ index suggested a slower pace of expansion over the medium term.”
It added that disposable income and demand for durable goods may come under pressure as modest growth in private sector credit extension and in money supply, as well as increases in the cost of electricity and fuel take effect on the economy.
New vehicle sales over the balance of the year are therefore expected to continue to show growth, but at a lower rate.
Source: www.bizpremises.co.za
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