/ 4 October 2004

September motor sales up 22,7%

South African new vehicle sales in September 2004 increased by 22,7% year-on-year (y/y), or 7 971 units, to 43 145 units after rising in August 2004 by 18,8% y/y and in July 2004 by 15% y/y, figures released by the National Association of Automobile Manufacturers of South Africa (Naamsa) on Monday showed.

Naamsa said it had been the best overall September sales month on record.

The year to date aggregate new vehicle sales were 19,3% ahead of the same period a year ago — at 329 534 units from 276 130 units in 2003.

September new car sales rose by 21,2% year on year to 29 108 units after August new car sales increased by 21,6% y/y. In May 2003 only 17 380 units were sold. On a year to date basis, new car sales remained 19,9% ahead of the corresponding period in 2003.

Sales of new light commercial vehicles (LCVs), bakkies and minibuses — at 11 266 units — were 27% higher than the same month in 2003 after rising by only 10,9% y/y in August. In May 2003 only 8 348 units were sold. On a year-to-date basis, new light commercial vehicles sales were 17% higher than those recorded for the same period a year ago.

Sales of vehicles in the medium and heavy truck segments of the industry during September, 2004 had been more subdued than in recent months, but had nevertheless registered gains. In the medium truck category the y/y increase was 29,2% compared with 39,9% in August, while for heavy trucks it was 12,5% versus

August’s 11,1%.

Latest available export statistics for August, 2004 reflected substantial improvement over prior months’ exports.

Total vehicle exports during August, 2004 had reached 14 947 vehicles — an improvement of 6 248 vehicles or 71,8% compared to the 8 699 vehicles exported during the previous month of July, 2004.

However, on a year to date basis, 2004 exports continue to lag corresponding totals for last year and the total of 74 760 for the first eight months was still below the 84 066 units exported in the same period last year.

Namsa said recent economic data had been very positive for further improvement in South Africa’s GDP growth rate.

Positive macro economic conditions, strong business and consumer confidence, an accommodative monetary and fiscal environment and, importantly, continued improved overall affordability, in terms of vehicle purchases and ownership —

represented an environment conducive to further strength in new vehicle sales.

As a result, the industry was expected to record above average, near record growth in Naamsa reported industry sales volumes during 2004. Taking account of the sales currently not reported in detail through Naamsa — 2004 new vehicle sales in South Africa should reach an all time record projected, on an aggregate basis, at about 455 000 new vehicles.

This positive environment would be further supported by the launch of new models at AutoAfrica Expo 2004, which will be held at the National Exhibition Centre in Johannesburg from October 25, 2004 to October 31, 2004. – I-Net Bridge