NAAMSA comment on the October 2019 New Vehicle Sales Statistics

NAAMSA comment on the October 2019 New Vehicle Sales Statistics

The  National  Association  of  Automobile  Manufacturers  of South  Africa  [NAAMSA]  welcomed  the  uptick  in  new  vehicle  sales  during  October  2019.  The  car  rental industry  continued  to  provide  substantial  support  to  new  vehicle  sales  volumes  during  the  month. Reflecting  on  the  new  vehicle  sales  statistics  for the  month  of  October  2019  released  today  for  publicconsumption  via  the  website  of  the  Department  of  Trade  and  Industry,  NAAMSA  confirmed  that aggregate  domestic  new  vehicle  sales,  at  51  978  units,  reflected  a  marginal  increase  of  122  units  or 0,2%  from  the  51  856  vehicles  sold  in  October  last year.  Monthly  export  sales  had  registered  a  furthersolid performance in line with industry expectations.

Overall,  out  of  the  total  reported industry  sales of  51  978  vehicles,  an estimated  38  558 units  or 74,2% represented  dealer  sales,  an  estimated  20,3%  represented  sales  to  the  vehicle  rental  industry,  3,7%  toindustry corporate fleets, and 1,8% to government.

The October 2019 new passenger car market increased by 860 cars or 2,5% to 35 904 units compared to the 35 044 new cars sold in October last year. The car rental industry continued to support domestic volumes, accounting for a significant 28,2% of new cars sales in October 2019.

Domestic sales of new light commercial vehicles, bakkies and mini-buses at 13 366 units during October2019 had recorded a decline of 833 units or a fall of 5,9% from the 14 199 light commercial vehicles sold during the corresponding month last year.  

Sales in the medium and heavy truck segments of the industry reflected an improved performance and at 839 units and 1 869 units, respectively, reflected an increase of 63 vehicles or a gain of 8,1%, in the case of medium commercial vehicles, and, in the case of heavy trucks and buses, an improvement of 32 units,or an increase of 1,7% compared to the corresponding month last year.  

The October 2019 export sales number at 41 277 vehicles reflected a strong increase of 7 152 units, or21,0%, compared to the 34 125 vehicles exported in the same month last year. For the first ten months of the  year,  vehicle  exports,  at  338 955  units,  are  now  at  their  third  highest  level  on  record  with  still  two months to go for the year and well on track to achieve another record in 2019.  

Although some positive signs during October 2019, the turnaround in the new vehicle market, anticipated for  the  second  half  of  the  year,  has  not  realised  yet.  Furthermore,  the  low  growth  environment  and  therise in South Africa’s fiscal risks do not bode well for the foreseeable future. Prospects for domestic new vehicle  sales  would  continue  to  be  affected  by  the depressed  current  macro-economic  environment, enduring pressure on household disposable income as well as low business and consumer confidence. Demand for domestic new vehicles, particularly the new passenger car market, therefore, would continueto remain under pressure over the medium term.

Of significance, however, is the continued strong performance on the export side. After only 10 monthsthe third highest vehicle export level on record has been achieved and the industry is now squarely set to achieve a new record in 2019. 

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