South African motor manufacturers on Tuesday said all indications were that the vehicle market would retain its momentum over the next quarter.
According to Brand Pretorius, chairperson of McCarthy Motor Holdings, should sales recorded by Associated Motor Holdings be included, total sales again exceeded the 50 000 mark to end the month on 51 447 units.
“This sales figure for new vehicle sales last month represented the best ever sales on record for a July month,” Pretorius said.
“The most encouraging feature of July’s sales is the strong performance of the different commercial vehicle market segments,” he added.
“Total commercial vehicle sales were up from 12 572 in July last year, to 15 872 this year — an increase of 26,2%, compared to a corresponding increase of 16,2% in passenger vehicle sales. Year-to-date total commercial vehicles sales are up a significant 27,3% from 81 827 units last year, to 104 187 units in 2005.”
“The buoyant commercial vehicle sales are as a result of higher levels of economic activity and business confidence,” stated Pretorius.
“The record sales also clearly demonstrate the willingness of local companies to boost capital expenditure due to their bullishness about future business prospects. It is encouraging to note that the ageing commercial vehicle population is now being renewed at quite a rapid pace.”
Pretorius also announced that McCarthy’s had its best sales month ever with total retail sales (new and used) of 7 921 vehicles. New vehicle sales increased by 23 ,8% and used by 29,8% if compared to June 2005’s results.
“The upturn in used vehicle sales is most encouraging, as sales have been stagnant now for over a year. A more healthy demand for used vehicles will undoubtedly influence new car trading and volumes positively in the months to come,” said Pretorius.
“All indications are that the vehicle market will retain its momentum over the next quarter.”
General Motors South Africa (GMSA) on Tuesday stated that recent calls by the government for a more aggressive economic growth target to stimulate the economy and fight unemployment is fuelling speculation of at least one more interest rate cut before year end.
GMSA said that even the blight of stubbornly high oil prices has failed to dampen consumer demand with rand strength and inflation in a tight band providing relative market stability.
“Maintaining our position in the top three rankings with a market share of 13,7% overall is pleasing and is evidence of our product portfolio consolidation at this point. We aim to grow this position in the medium term through the introduction of several new products in segments previously unserved by GM South Africa,” said GMSA’s sales and marketing director Malcolm Gauld.
“Our performance in sectors where we dominate, such as the sub-one tonne bakkie segment, continues with 1654 Opel Corsa Utilities sold. Demand for the Isuzu KB remains strong and the recent addition of three new models and Service & Maintenance Plans across the range will add even further to this performance.
“We also managed to increase our sales volumes in the passenger vehicle market and in fact recorded our best total passenger vehicle sales (3 176 units) in over five years achieving 10,3% share of the passenger market,” said Gauld.
“Traditional demand for direct sales to government and rental fleets in the third and fourth quarters and coupled to positive consumer sentiment augurs well for the whole industry for the balance of 2005,” said Gauld.
Volkswagen of South Africa sales and marketing director Jolyon Nash said the motor manufacturer’s July 2005 sales performance showed year-on-year growth of 32%. Year-to-date, Volkswagen of South Africa has sold 11 701 more units than in 2004.
“July was an all-time record passenger car sales month for Volkswagen of South Africa, with sales of 7 873 cars into the market,” he said.
“Another significant fact is that year-to-date, Volkswagen of South Africa is 8 516 passenger units ahead of Toyota,” Nash added.
The luxury Audi brand again sold more than 1 000 units, capturing 3% of the passenger market, the group said.
Nash said that cyclical analysis of new car demand indicated a possible levelling off of month-on-month growth in the new car sales cycle for the first time since early 2003, a development that is also being reflected in the trend in new car sales rates per day.
He said: “The coming months of August, September and October are, however, all months of seasonal strength for new car demand and with economic circumstances and levels of both business and consumer confidence continuing to support this, it is likely that these months will continue reflecting the buoyancy that has characterised the market so far in 2005.
“We now confidently predict an all-time record total passenger car market in 2005 exceeding 400 000 units. In fact, there is a strong possibility that this figure will exceed 420 000 units,” he added. – I-Net Bridge