/ 2 September 2005

New car sales break record in August

New car sales for August reached the highest single monthly sales total on record, the National Association of Automobile Manufacturers of South Africa (Naamsa) said on Friday.

Assisted by strong consumer demand and purchases by the car-rental industry, new car sales rose to 35 770 units. This was a gain of 7 853 cars or 28,1% compared with the 27 917 new cars sold in August last year.

The August 2005 new-car market reflected an improvement of 4 837 vehicles or 15,6% over the 30 933 new cars sold in July.

Naamsa said vehicle sales in general are still on the increase.

For the first eight months of this year, aggregate new vehicle sales were 26,9% ahead of the corresponding period last year.

Naamsa, which described August vehicle sales as ”another superlative performance”, said aggregate sales for last month showed an improvement of 29,4% on the same month last year.

A total of 53 229 units were sold.

It said improved availability of products, purchases by car-rental companies and government buying had lent support to sales of new light commercial vehicles, bakkies and minibuses.

A total of 14 818 units were sold during August, an improvement of 3 553 vehicles or 31,5% on the 11 265 unit sales in the same month last year.

Supported by strong fixed investment in the transport sector and the broader economy, sales of vehicles in the medium and heavy truck segments of the industry also recorded further ”exceptional gains”, it said.

The August 2005 sales rose to 1 176 units and 1 465 units respectively. This was an improvement of 321 units or 37,5% in the case of medium commercials, and 360 units or 32,6% for heavy commercial vehicles over August last year.

Latest available statistics showed that export sales in South African-produced vehicles for the period January to July 2005 — 59 613 units — remained marginally below the 59 813 vehicles exported in the first seven months of 2004.

Preliminary data for August 2005 indicated a substantial increase in export sales to more than 12 500 vehicles.

”This trend was expected to continue for the balance of the year and through 2006 as a result of new export programmes coming on stream,” Naamsa said.

It said the market for new cars and all types of commercial vehicles remains fundamentally strong and the exceptionally strong growth trend is expected to continue for the balance of 2005 and into 2006.

”Despite increasing fuel prices, consumer demand remained strong.

”Strong business confidence, low interest rates, enhanced new-vehicle affordability coupled with attractive sales incentives, [and] the introduction of technologically advanced, highly fuel-efficient new models should combine to lend support to the market over the short to medium term,” Naamsa said. — Sapa