/ 4 July 1997

New car sales recover from May slump

FRIDAY, 1.00PM

LATEST figures from the National Association of Automobile Manufacturers show that new car sales last month rose 4,3% to 20 190 units against last June, offering some encouragement after May’s poor performance.

New car sales in the first half of this year climbed 3,1% from the same period last year to 122 477 units. However, the excellent volumes achieved in the second half of last year are unlikely to be matched this year. Further gloom among manufacturers comes as a result of a shift away from luxury vehicles to the cheaper end of the market.

Total June vehicle sales, comprising the passenger and light, medium and heavy commercial sectors, increase 1,4% to 31 352 units. This was underscored by a 2,5% drop in total sales during the first half of this year to 185 837 units. June heavy truck sales crashed 25% against last June to 581 units, while new minibus and light commercial sales showed a 2,3% decline to 10 151 units. Medium commercial sales were up 6,5% to 429 units.

Meanwhile, the seven major motor manufacturers and the National Union of Metalworkers of SA reached agreement this week on a 9,5% across-the-board wage increase, in line with the three-year wage agreement signed in 1995.