WEDNESDAY, 5.00PM:
LATEST figures released by the National Association of Automobile Manufacturers of SA show that new model introductions continue to lift passenger car sales, but weakness in the heavier vehicle sectors provides further evidence of a slowdown in general economic activity.
Naamsa said on Wednesday new car sales held up reasonably well in August, as new models helped to increase sales 1,1% to 20 659 units compared to August 1996. However, the figure was some 6% down on sales in July of almost 22 000 units.
The latest figures show continued strong sales at the bottom end of the market, with entry-level cars accounting for 38,5% of total passenger car sales, underlining the cintinued pressure on the top end of the market.
Total industry sales figures paint an even darker picture. The industry sold 30 564 units last month, more than 2 000, or 6%, down on last year’s 32 641, and 14% lower than sales in July this year. The light commercial vehicle, minibus and bakkie sector slumped dramatically, with sales falling 20,5% to 8 780 units. The light commercial sector is strongly linked to overall economic activity and the sharp sales drop is seen as cause for concern.
The low-volume, medium and heavy truck segment reported sales of 496 units, some 9% down on last year’s 544, while the sale of heavy commercial vehicles dropped by a more modest 1,6% to 629 units.
Cumulative industry sales after eight months of the year are running 2,3% down on the same period last year. Naamsa warned that against the background of continued high real interest rates, pressure of disposable incomes, and the slow down in the economy, the new vehicle market will remain under pressure for the remainder of the year.
In contrast to the weakness in the domestic market, exports have performed admirably this year, with sales to July at 8 689 units, 72% higher than in 1996.