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Car sales keep on climbing

2012-12-05 07:18

MOVING METAL: Overall year-on-year new car and commercial vehicle sales rose by 7.3% in November 2012.

JOHANNESBURG - Overall year-on-year new car and commercial vehicle sales rose by 7.3% in November 2012, the National Association of Automobile Manufacturers of SA has reported.

Another 3636 units were sold by the industry, pushing vehicle sales to 53 636 for November 2012 from 49 498 for the same period in 2011.

'PERFORMANCE POSITIVE'

"Total domestic sales for the first 11 months of 2012 remain 9.8% ahead of the corresponding period 2011," Naamsa added. Export sales registered a substantial increase of 8088 (39.5%).

“Despite signs of weakness in the economy,” Naamsa claimed, “the performance of the SA automotive sector continues to be positive.”

Low finance charges, strong replacement demand, a highly competitive trading environment, attractive sales incentives and new models continue to support domestic sales and domestic sales are on track for growth of around 10% over 2011.

Negative factors that could influence the new vehicle market over the medium term include a slowing economy, rising inflation and a weak rand.

The modest new vehicle price increases experienced through 2010 and 2011, Naamsa said, might not be sustainable. "The outlook for 2013, at this stage, is one of modest growth in vehicle volume terms -- probably in the range of six to eight percent.”

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