Car sales spike by 12.6% in June

04 Jul 2011 16:12 - Nickolaus Bauer

New vehicle sales are increasing compared to this time last year, but car manufacturers say the rising cost of living means the boom wont last.

New vehicle car sales have increased by 12.6% in June 2011 in comparison to same period in 2011, the latest figures released by the National Association of Automobile Manufacturers of South Africa (Naamsa) signalled on Monday.

In June 44880 new cars were sold, as opposed to the 39874 units sold in June 2010.

New cars sold in the first half of 2011 showed an encouraging spike of 15%, when compared with the first half of 2010.

Although the number may seem encouraging, Naamsa is warning future sales in 2011 will be put under pressure by rising costs.

“We are slightly worried about the inflationary outlook as the rise in the cost of living will bear down on the pace of growth in new sales in the motor industry sector,” Norman Lamprecht, executive director at Naamsa told the Mail & Guardian.

. .