Pretoria - New vehicle sales in November continued on an upswing, improving by 29.6 percent, the National Association of Automobiles Manufacturers of South Africa (NAAMSA) said on Thursday.
According to NAAMSA, new vehicle sales were 44 371 units, which was an improvement of 10 136 vehicles, or 29.6 percent, compared to the 34 235 vehicles sold in November 2009.
Of the overall total NAAMSA-reported industry sales figure of 38 172 vehicles, 82.2 percent represented dealer/ retail sales, 7.1 percent represented sales to government, 6.6 percent represented sales to the car rental industry, while 4.1 percent represented industry corporate fleet sales.
There was an improvement of 28 percent in November 2010 (from November 2009) in sales of new light commercial vehicles, bakkies and minibuses at 12 622 units. On a year to date basis, light commercial vehicle sales reflected an improvement of 13.1 percent.
Strong gains were registered in the November 2010 sales of vehicles in the medium and heavy truck segments at 791 units and 1 428 units respectively. This was an increase of 47.9 percent and a massive 54.2 percent respectively, compared to the corresponding month last year.
"The strong recovery in sales of heavy and extra heavy trucks in recent months indicated renewed fixed investment momentum in the economy," said NAAMSA.
In November, export sales reflected further gains as manufacturers' output recovered from industrial action experienced in August and September 2010.
New vehicle exports rose to their highest monthly total at 28 550, reflecting an improvement of 5 565 vehicles or a gain of 24.2 percent compared to the 22 985 vehicles exported in the corresponding month last year.
The reduction of 6.5 percent in interest rates in the last two years has improved new vehicle affordability. Further gradual improvement in finance approval rates, pent up replacement demand and new model introductions should continue to support new vehicle sales going forward.
"New vehicle sales over the medium term would remain a function of the performance of the domestic economy and, in the case of export sales, the sustainability of the recovery in the global economy.
"For 2011, domestic new car sales, at this stage, were projected to improve by between 7.5 and 10 percent in volume terms. New commercial vehicle sales, on the back of higher projected economic growth, could rise by up to 15 percent," said NAAMSA.
