Another good month for SA car sales: 'Encouraging gains' in August 2017

Johannesburg – "New vehicle sales recorded encouraging gains for the second consecutive month," reports National Association of Automobile Manufacturers of South Africa (Naamsa). 

Naamsa reports new vehicle sales registered 49 222 units in August 2017, an increase of 3091 units or 6.7% compared to the 46 131 vehicles sold in August 2016. 

The new car market reflected a further increase at 32 161 units, a gain of 1654 units or 5.4% compared to the 30 507 new cars sold in August last year.

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Total sales 

Overall, out of the total 49 222 vehicles sold, an estimated 40 320 units or 81.9% represent dealer sales, an estimated 11.9% represent the rental industry, 3.6% corporate fleets and 2.6% were government sales.

Export sales in August 2017 registered 29 927 vehicles, a decline of 4431 units or a drop of 12.9% compared to the 34 358 vehicles exported in August last year.

More bakkies sold

Domestic sales of new light commercial vehicles (LCV), saw bakkies and mini buses register 14 834 units in August 2017, a substantial gain of 1448 vehicles or an improvement of 10.8% compared to the 13 386 LCVs sold during same period in 2016. The improvement builds on the gains recorded in local LCV sector in recent months.

Image by Wesbank

Exports

Following the strong gain recorded in new vehicle exports in July 2017, exports contracted during August with a decline of 4431 units (-12.9%), compared to the 34 358 vehicles exported in August 2016.

Overall market

Naamsa said: ""The domestic automotive industry continued to hold up relatively well in the current difficult economic environment."

Reduced new vehicle pricing pressures and overall lower inflationary, trends together with the 25 basis points reduction in interest rates (July 2017) provided some relief for consumers.

"Furthermore, attractive sales incentives on offer also supported demand. Naamsa continues to anticipate that the overall market for 2017 would be at levels similar to those recorded in 2016 with the possibility, based on domestic sales over the last two months, of an overall improvement of between 1.0% and 1.5%. Global economic growth prospects remained quite positive and this should continue to support vehicle exports over the medium term."