The South African new car sales market continues to experience support ahead of expectation. Vehicle sales as published by the National Association of Automotive Manufacturers of South Africa (Naamsa) reached 53 997 units in May 2013, which is well in line with the industry’s expectations for a total sales target of between 650 000 and 680 000 units in 2013.
Total sales are slightly above expectations for May 2013. This is the best month of May sales since market peak in 2007 and the export of South African vehicles continues to grow. Dealer sales accounted for 91% of the total, while light commercial vehicle growth exceeded that of passenger vehicle growth.
“During May the motor industry saw sales once again surprising with deliveries of new vehicles ahead of market forecasts, but at a more restrained rate than in the first four months of the year,” says Malcolm Gauld, GMSA’s Vice President Vehicle Sales, Service, and Marketing. “Most of the strength in the market is derived from activity in the private sector with sales through the dealer channel accounting for 91% of the total. Activity in the important Government and Rental sectors was somewhat subdued.
“Overall the market was up 7.5% on May last year with passenger vehicles gaining 6.3% for the month versus 2012. The light commercial vehicle once again delivered an encouraging performance with an 11.1% gain in sales versus May 2012. Year-to-date growth for the total market of 7.5% is likely to reduce over the coming months but will still remain in positive territory at year end. Continued pressure on the rand is, however, a consideration that cannot be ignored and at some point the motor industry’s hand will be forced to factor this in through pricing adjustments,” Gauld said.
“One should consider the sales figures in perspective,” says Glenn Crompton, Vice President: Marketing at Toyota South Africa Motors. “Although vehicle sales are in line with expectations it remains the strongest month of May since the market peaked in 2007. The same can be said of the export market. Vehicle exports grew by 16.5% in comparison to the same month last year. In May Toyota exported one in every four South African vehicles leaving local harbours. A high level of competition amongst brands and a mix of replacement and pre-emptive purchases (in expectation of a price increase) have helped sales in May,” Crompton said.
