August new vehicle sales maintained the steady growth trend of the first seven months of 2012 with sales in the major segments registering relatively decent gains compared to the corresponding month last year. August, 2012 aggregate Industry domestic sales improved by 4 844 units or 9.4% to 56 253 vehicles from 51 409 units in August last year. Total domestic sales for the eight months of calendar 2012 remained 11.3% ahead of the corresponding eight months in 2011. August, 2012 export sales at 25 024 vehicles had registered marginal improvement rising by 188 units or 0.8%.
Aggregate Industry new car sales during August, 2012 maintained upward momentum and at 40 345 units (including MBSA) reflected an improvement of 4 153 units or 11.5% compared to the 36 192 new cars sold during August 2011. Year to date new car sales remained 12.5% ahead of the corresponding eight months of 2011, whilst the daily selling rate during August, 2012 had continued close to 5 year high levels. The August 2012 new car market, for the second month in succession, was supported by strong demand on the part of car rental companies with the car rental Industry accounting for 15.2% of total sales. The contribution by car rental companies is expected to remain high over the next few months as the car rental Industry continues to re-fleet.
Despite prospects of a lower economic growth environment, the automotive sector continues to perform remarkably well. Factors that will continue to support domestic sales include historically low interest rates, ongoing improvement in vehicle affordability in real terms and improving demand for credit by households and businesses. The recent 0.5% reduction in interest rates should also support sales of consumer durable products, particularly new motor vehicles. The highly competitive trading environment, attractive incentives and new model introductions would also support demand. In terms of domestic sales, the Industry remained on track during 2012 for growth of around 10%. Looking ahead to 2013, increasing inflationary pressures on the back of expected higher fuel and food prices and the impact of Rand weakness on new vehicle pricing were likely to result in a more difficult trading environment and more subdued growth in vehicle sales.
The Uitenhage based Volkswagen Group South Africa recorded its best monthly vehicle sales in 2012
During August Volkswagen Group South Africa recorded its best vehicles sales in 2012 to maintain its leadership position in the new passenger car market in South Africa. Volkswagen Group South Africa reported a total sales of 9 135 units, its highest monthly sales in 2012 and highest ever sales in August since 2007.
The record figure was aided by Polo Vivo (3 714 units) which achieved its best ever monthly sales since its launch in March 2010. Polo Vivo was also the best selling model in the total new vehicle market in August. Polo was the second best selling model in the new passenger car market with 2 355 units.
In August 2012, 40 345 new passenger cars were sold in South Africa. The market grew by 6.6% over July 2012. Compared to August 2011 sales increased by 11.6%. This has resulted in sales growing by 12.5% above the same period for 2011.
The selling rate of new cars per day in August 2012 grew to a level last seen in August 2007. This was largely supported by seasonally strong sales to rental car companies. An average of 1 566 new cars were sold per day during the month. A similar rate was only previously achieved at the peak of the last boom in the new car market in 2006.
“The new car market has been characterised by strong levels of demand for new passenger cars. With interest rates at the lowest level in thirty eight years, debt servicing costs for households are low and sufficient credit is available to service demand for new cars. New car prices are growing at less than 3% on an annual basis and in real terms, after adjustment for inflation, have been in negative territory for over two years,” said Mike Glendinning, Director: Sales and Marketing, Volkswagen Group South Africa.
“The positive impact on new vehicle affordability of low interest rates and low growth in new vehicle prices continues to be further enhanced by the intensely competitive nature of the new car market delivering attractive offers to consumers. Replacement demand also continues to play a strongly supportive role for the new car market and the introduction of new models to the market continues to entice consumers,” added Glendinning.
“While economic growth is likely to remain low in the second half of 2012, based on the factors supporting demand for new cars, the new car market for 2012 is likely to end up in excess of 10% of the market recorded in 2011,” concluded Glendinning.
The Audi Brand sold 1 500 units its highest sales ever recorded in August. The top seller was the A4 Sedan/Avant which sold 397 units.
Port Elizabeth based GMSA Captured 11% of sales in active trading conditions
General Motors South Africa (GMSA) recorded sales of 6 169 vehicles in August out of a total reported by NAAMSA of 56 253 for the month for an 11% share of the total market.
“Vehicle sales activity in August was stronger than expected by many in the motor industry countering the view that a period of levelling off in sales was to be anticipated,” says Malcolm Gauld, GMSA’s Vice President, Sales and Marketing. “Sales through the dealer channel were relatively strong – an indicator of private buyer activity – supported by a degree of seasonal fleet refreshment in the rental sector. Deliveries to the fleet sector (government) showed an improvement over August 2011 supported by a higher level of stock availability (this sector was influenced by post tsunami constraints last year).
“Factors impacting on the market will have been a higher number of selling days in the month, notwithstanding a public holiday early on, and a degree of private buyer confidence supported by an interest rate reduction in July. To this we can add a high level of promotional activity in the market place and continued new model interest that are associated with increased showroom traffic.
“New passenger vehicle activity continues to be focused on the lower end of the market as downsizing of the national parq continues. Here the Chevrolet Sonic and Spark feature well with their high level of technical, comfort and safety specification as an exceptional value proposition. Passenger vehicles accounted for 40 345 of the total industry sales for growth of 11,5% compared to August 2011.
“While the passenger sector flourished in August, the light commercial sector presented a perhaps more realistic market position. In this sector growth was 5,7% over August last year with 13 637 sales for the month, a reflection of a more conservative approach amongst commercial buyers.
“A point of note was the lack lustre performance of the heavy and extra heavy truck markets, which aside from the bus sector, provided the only negative performance compared to August 2011. Heavy trucks were down by 16% and extra heavy trucks by 3,8%. Both are indicators of activity in spending on construction and infrastructure projects and bear monitoring going forward.
“Year to date growth in the overall market is a healthy 11,3% with the passenger sector now 12,5% ahead for the first 8 months of the year, both higher than expected numbers. The light commercial sector is in line with expectations at 9,1% ahead of last year. The market is running ahead of the expected growth of around or just below 10% for the year but August sales indicate that the unexpected may just be achievable.”
Article source: http://mype.co.za/new/2012/09/nammsa-sales-august-2012/