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2018-06-01 17:17

Image: iStock

It’s been yet another good month for local automotive industry as car and bakkie sales improve.

New vehicle sales at 42 984 showed an improvement of 1022 units (+2.4%) compared to the 41 962 vehicles sold in May 2017. 

Aggregate export sales at 32731 vehicles reflect an improvement of 3982 units or a gain of 13.9% compared to the 28749 vehicles exported in May last year. 

Will the upward trend continue? Naamsa shares its predictions later in this article.

Market breakdown

Overall, out of the total reported Industry sales of 42 984 vehicles, an estimated 37 370 units (87%) represented dealer sales, an estimated 7.3% represented sales to the vehicle rental Industry, 3.7% to industry corporate fleets and 2% to government. 

New car market

The new car market, at 26 561 units, registered a marginal improvement of 179 cars or a gain of 0.7% compared to the 26 382 new cars sold in May 2017.

"Seasonal factors continued to affect the car rental industry contribution which had accounted for about 9.8% of new car sales in May 2018," reports Naamsa.

Bakkie sales 

Domestic sales of new light commercial vehicles, bakkies and mini buses had improved modestly and at 13 977 units during May 2018 had registered a gain of 434 vehicles or 3.2 % compared to the 13 543 light commercial vehicles sold during the corresponding month last year. 

The market going forward

The association said: "Naamsa expectations going forward remained unchanged, namely, new vehicle sales should show a gradual improvement over the medium term due to further recovery in domestic demand supported by continued moderation in new vehicle price inflation, the improvement in South Africa’s political and policy environment, the March, 2018 reduction in interest rates and unchanged international credit ratings. 

"As a result of these developments, supported by improved business and consumer confidence, a modest recovery in economic growth in 2018 and 2019 was anticipated. This in turn would benefit domestic new vehicle sales over the balance of the year and an annual improvement in domestic sales volumes of 3% plus compared to 2017 was possible. Robust global growth should benefit new vehicle exports going forward.

"However, the current wave of protectionism could negatively impact on the global economy. Despite this, exports should show further upward momentum in the months ahead."

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Read more on:    naamsa  |  south africa  |  cars  |  new car sales  |  bakkies

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