/ 2 March 2005

Motor trade sales rise by 17,4%

South Africa’s 2004 motor trade sales rose by 17,4% year-on-year (y/y) to R175,3-billion after a 12,3% rise in 2003, Statistics South Africa (Stats SA) said on Wednesday.

This compared with growth of 9,8% and 7,4% in 2004 and 2003 in nominal gross domestic product (GDP), while value added in internal trade, which includes wholesale, retail, motor trade and hotels and restaurants, saw growth ease to 9,4% in 2004 from 10,3% in 2003.

Many economists believe that internal trade and GDP growth will be revised higher when the fourth quarter and 2004 data is revised at the end of May, as December retail and wholesale trade sales will only be released later on Wednesday and were therefore not available when the first estimate of GDP was released by Stats SA on February 15.

On a seasonally adjusted basis, December’s sales were the highest in 2004 and equivalent to an annualised R191-billion.

Most motor dealers expect another good year in 2005 with sales growth forecast at around 15%. – I-Net Bridge