Chinese to flood SA market
2007-01-11 08:00
Chana Star
Author: Tiisetso Motsoeneng
South Africa would see more Chinese vehicles introduced into the value segments of the market this year, specifically SUVs and Light Commercial Vehicles, McCarthy Motor Holdings chairman said on Wednesday.
Brand Pretorius said, "The market will be stimulated by a host of new model introductions and facelifts, including some important launches by established manufacturers and importers."
In October last year, China South Africa shipped 300 Chinese manufactures light delivery vehicles - or bakkies - saying it planned to increase the number to 1000 by the end of the 2006.
He added that all the various market segments would be characterised by more intense competition than ever before, as manufacturers and importers fight for market share.
"It is therefore likely that a buyers' market will prevail, which in turn may result in a high incidence of special offers and promotions," he said.
His comments come a day after the National Association of Automobile Manufactures of South Africa (NAAMSA) reported subdued new vehicle sales for December.
The industry body further warned that the new car market was expected to move sideways or register modest growth at best.
Pretorius said that the industry was expected to sell around 771 000 new vehicles this year - a 7.95 increased on the 714 340 new vehicles sold during 2006.
Pretorius believed that following the substantial growth experienced in the market over the past four years, 2007 would be a period of consolidation for the local motor industry as another year of double-digit growth appeared unlikely.
He cited the tightening in monetary policy, with a 100 basis point likely during the first half of this year, and subsequent pricing increases as the major factors that could make the year a tough one.
"Cumulative increases in the calendar year 2007 could range between 7% and 10%," said Pretorius.