/ 2 February 2006

SA new vehicle sales up 22,7% in January

New vehicle sales by the National Association of Automobile Manufacturers of South Africa (Naamsa) members increased by 20,3% year-on-year (y/y) in January to 48 855 units. A further 4 950 units were sold by a non-Naamsa members for an overall increase of 22,7% y/y.

Naamsa sales saw a rebound in the monthly sales after a slowdown from the record 54 560 sales set in September 2005.

In December there were sales of 45 770 units compared with 50 502 in November and October’s 50 697 units.

During 2005, South Africa was the best performing market internationally with total new South African new vehicle sales breaching the 600 000 level for a 28,3% increase to a record 617 540 units.

Naamsa said on Thursday that an expanding domestic economy, stable new vehicle prices and interest rates and positive consumer and business confidence — represented a positive environment for further growth in new vehicle sales.

The growth trend established in 2005 was expected to continue for the time being with some consolidation during the second half of the year.

Following an improvement in aggregate Naamsa new vehicle sales of 25,7% during 2005, industry projections for 2006, at this stage, anticipated an improvement in aggregate sales for the year of about 10%.

Record January new car sales of 34 278 units reflected a gain of 5 368 units or 18,6% y/y. Factoring in the 4 141 new cars retailed, but not reported

through Naamsa, the January 2006 new car market grew by 21,5% y/y.

Sales of new light commercial vehicles, bakkies and minibuses at 12 651 units during January 2006 reflected an improvement of 2 435 units or 23,8% y/y.

Supported by positive investment sentiment, sales of vehicles in the medium and heavy truck segments of the industry had also started the year on a high note and the January 2006 sales at 857 units and 1 069 units, respectively, had recorded an improvement of 121 units or 16,4% y/y, in the case of medium commercials, and an exceptional 307 units or 40,3% y/y, in the case of heavy trucks and buses.

Aggregate industry vehicle exports during 2005 improved by 29 405 units or 26,6% to 139 912 units compared with the 110 507 vehicles exported in 2004.

In revenue terms, vehicle exports during 2005 were about R20-billion. As existing and new export programmes gained momentum, exports of South African produced motor vehicles were projected to grow significantly during 2006 rising

to over 200 000 vehicles for the year. – I-Net Bridge