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Strong demand for rental cars helped drive new vehicle sales in October, the National Association of Automobile Manufacturers of SA reported on Tuesday.
"... new vehicle sales regained some momentum during the month boosted by exceptionally strong demand by the car rental industry," Naamsa said.
Out of the 24 699 new cars sold in October 2010, the car rental sector accounted for 25 percent at 6207.
"One out of every four new cars sold during October 2010 went to the rental industry."
Overall, aggregate industry vehicle sales improved by 22 percent in October 2010 compared to the corresponding month the previous year. In October 2010, 44 056 units were sold compared to 36 052 in October 2009.
Exports recovering
Aggregate export sales improved significantly after they were negatively affected the previous two months by widespread industrial action and the associated loss of production.
In September 2010, only 12 534 vehicles were exported. In October this jumped to 27 338 vehicles - an increase of 118 percent.
"In the event, new vehicle exports for October 2010 at 27 338 vehicles reflected an improvement of 6387 vehicles or a gain of 30.5 percent compared to the 20 951 vehicles exported in the corresponding month last year."
Naamsa expected that over the balance of the year vehicle manufacturers would continue to boost output to make up for lost production during strike action in the vehicle and component manufacturing sectors.
The car emissions tax introduced from September 1 had an effect on new car sales.
"The October 2010 daily sales rate was lower than the daily selling rate recorded during the months of August and September 2010 probably on account of the cost raising effect of the new car emissions tax which had been introduced on 1st September, 2010," Naamsa said.
However, aggregate industry new car sales which include sales from Associated Motor Holdings and Amalgamated Automobile Distributors, during October at 30 752 units improved by 25 percent compared to 24 584 new cars sold in October 2009.
The year-to-date improvement in sales stood at 30 percent.
Commercial vehicles
Sales of industry new light commercial vehicles, bakkies and minibuses improved by 14 percent compared to October last year.
The medium truck industry grew by 0.6 percent compared to October 2009, while the heavy truck and bus segment made a "massive gain" of 51 percent with 1422 units sold.
"The sales of heavy and extra heavy trucks suggested renewed fixed investment momentum in the economy," Naamsa said.
Naamsa said that the six percentage point drop in interest rates since the end of 2008, stable new vehicle prices, modest improvement in loan finance approval rates and pent up replacement demand, should continue to support new vehicle sales.
However, it said economic conditions would remain difficult.
"New vehicle sales over the medium term would remain a function of the performance of the domestic economy and, in the case of export sales, the sustainability of the recovery in the global economy."
"... new vehicle sales regained some momentum during the month boosted by exceptionally strong demand by the car rental industry," Naamsa said.
Out of the 24 699 new cars sold in October 2010, the car rental sector accounted for 25 percent at 6207.
"One out of every four new cars sold during October 2010 went to the rental industry."
Overall, aggregate industry vehicle sales improved by 22 percent in October 2010 compared to the corresponding month the previous year. In October 2010, 44 056 units were sold compared to 36 052 in October 2009.
Exports recovering
Aggregate export sales improved significantly after they were negatively affected the previous two months by widespread industrial action and the associated loss of production.
In September 2010, only 12 534 vehicles were exported. In October this jumped to 27 338 vehicles - an increase of 118 percent.
"In the event, new vehicle exports for October 2010 at 27 338 vehicles reflected an improvement of 6387 vehicles or a gain of 30.5 percent compared to the 20 951 vehicles exported in the corresponding month last year."
Naamsa expected that over the balance of the year vehicle manufacturers would continue to boost output to make up for lost production during strike action in the vehicle and component manufacturing sectors.
The car emissions tax introduced from September 1 had an effect on new car sales.
"The October 2010 daily sales rate was lower than the daily selling rate recorded during the months of August and September 2010 probably on account of the cost raising effect of the new car emissions tax which had been introduced on 1st September, 2010," Naamsa said.
However, aggregate industry new car sales which include sales from Associated Motor Holdings and Amalgamated Automobile Distributors, during October at 30 752 units improved by 25 percent compared to 24 584 new cars sold in October 2009.
The year-to-date improvement in sales stood at 30 percent.
Commercial vehicles
Sales of industry new light commercial vehicles, bakkies and minibuses improved by 14 percent compared to October last year.
The medium truck industry grew by 0.6 percent compared to October 2009, while the heavy truck and bus segment made a "massive gain" of 51 percent with 1422 units sold.
"The sales of heavy and extra heavy trucks suggested renewed fixed investment momentum in the economy," Naamsa said.
Naamsa said that the six percentage point drop in interest rates since the end of 2008, stable new vehicle prices, modest improvement in loan finance approval rates and pent up replacement demand, should continue to support new vehicle sales.
However, it said economic conditions would remain difficult.
"New vehicle sales over the medium term would remain a function of the performance of the domestic economy and, in the case of export sales, the sustainability of the recovery in the global economy."
