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Strong gains in new car market

2011-10-04 13:45

Johannesburg - Vehicle sales in all segments of the South African market showed surprisingly strong gains in September, 2011.

The National Association of Automobile Manufacturers of SA (Naamsa) reported total domestic sales improved by 12 539 – about 30% - to reach 54 364 compared to the same month in 2010.

EXPORTS UP TOO

However, sales in September 2010 were severely depressed thanks to stock shortages caused by industry-wide strikes. Whatever, total year-to-date domestic sales are still 16.2% ahead of the corresponding nine months in 2010.

September export sales (25 933) were up by 13 399 (106.9%) compared to the strike-affected total 12 534 the previous year.

The September 2011 new car market again received support from strong demand by car rental companies which took 21.4% of total new car sales.

Naamsa said the strength of the new car market in September 2011 could be attributed to a number of factors, including an ongoing improvement in the financial position of consumers on the back of relatively low interest rates, lower prices and aggressive marketing and sales incentive programmes.

Consumers would have been encouraged to bring forward planned purchases in light of the risk of future price increases as a result of the recent substantial depreciation in the rand exchange rate.
 

Comments
  • Trevor - 2011-10-05 07:51

    Yes, ABSOLUTELY NOTHING to do with the man on the street buying power...there it's still declining...which is a TRUE indicator of the current economic status...

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