The strong trend in new vehicle sales growth continued last month, with the industry recording its best-ever figures for the month of April, the National Association of Automobile Manufacturers of South Africa (Naamsa) said on Wednesday.
New vehicle sales for April 2005 amounted to 40 477 units — an improvement of 11 796 vehicles or 41,1%, compared with the 28 681 new vehicles sold during the corresponding month last year.
However, the year on year improvement should be viewed in the context of depressed April 2004 vehicle sales figures due to the Easter holidays falling during that month, Naamsa added.
New car sales in April 2005 of 27 090 units represented the strongest monthly sales performance on record and reflected a gain of 8 356 units or 44,6% compared with the 18 734 new cars sold during April 2004 — again a relatively low base.
However, the April new car market registered a decline of 1 574 vehicles or 5,5% compared with the 28 664 new cars sold during March 2005. Year to date sales volumes remained about 27,6% ahead of last year’s corresponding sales, Naamsa said.
Despite the lack of stock of certain sources, sales of new light commercial vehicles, bakkies and minibuses also performed well and at 11 458 units during April reflected an improvement of 2 945 vehicles or 34,6%, compared with the 8 513 unit sales for the corresponding month last year.
The April sales, however, reflected a decline of 1 455 vehicles or 11,2%, compared with March 2005.
Sales of vehicles in the medium and heavy truck segments of the industry continued to register solid gains and April sales at 828 units and 1 101 units respectively reflected an improvement of 222 units or 36,6%, in the case of medium commercials, and 273 units or 33%, in the case of heavy commercial vehicles and buses — compared with the holiday affected corresponding month last year.
Sales of vehicles in the medium, heavy and extra heavy commercial vehicle segments of the industry remained in a strong upward phase on the back of positive fixed investment trends with year-to-date sales volumes showing an improvement of 44,2% for medium commercials and 20,6% for heavy commercials compared with the corresponding period of 2004.
Under pressure from the strong rand, built-up vehicle exports continued to lag modestly behind last year’s figures with overall new vehicle exports for the first three months of the year at 23 575 units, down 3,8% compared with 24 506 new vehicles exported during the first quarter of 2004.
The momentum of industry exports should improve from about the middle of the year as various new vehicle export programmes are introduced, Naamsa stated.
Naamsa said the industry’s near term outlook remained positive. The further reduction in interest rates in April, falling new vehicle prices, ongoing attractive sales incentives, the introduction of technologically more advanced models with additional features at no extra cost to buyers and strong consumer sentiment, would continue to support new vehicle sales during the balance of 2005, it concluded. – I-Net Bridge