New-vehicle sales remain buoyant, despite a predicted slowdown, with such sales, in February, increasing by 17,2% year-on-year to 50Â 196. Motor manufacturers remain fairly bullish going forward.
“Vehicle sales continue to show strong growth this month, in spite of it being the shortest month of the year,” Ford Motor Company of Southern Africa’s vice-president, Nigel Harris, said of February sales. “The industry is expected to maintain its impressive growth momentum for the time being, with some consolidation expected towards the second half of the year.
“The Light Commercial Vehicle (LCV) segment has come in strongly at 15Â 458 units, representing an increase of 23,1% over January 2005, and 22,4% over last month. This indicates that the stock problems experienced during January 2006 have been partially eased,” Harris said.
“With just two months behind us, the industry is already approaching the 100Â 000 vehicles mark. Although consolidation is on the cards, 2006 is already on track for record numbers,” he concluded.
General Motors South Africa sales and marketing director, Malcolm Gauld, echoed these views. Gauld said in a statement that the increase in new-vehicle sales was attributable primarily to growth of 23,1% in the LCV arena.
Evidence of growth in the industrial sector is reflected in new truck sales growth in excess of 23%, once again fuelling business confidence in the South African economy, the statement said.
Volkswagen of South Africa sales and marketing director, Mike Glendinning, said that after two years of growth in the new passenger car market, measuring 22% and 25% respectively, some consolidation in rates of growth is to be expected, as the impact of interest-rate reductions between 2003 and 2005 dissipates and as households start running out of capacity to continue expanding debt positions.
The beginning of 2006 had been characterised by continued buoyant economic circumstances, with real disposable income of households continuing to grow steadily.
“With both business and consumer confidence at historically high levels, and with growth in new-car prices remaining firmly in negative territory, conditions are in place to support ongoing buoyancy in the economy and in demand for new passenger cars, well into 2006.
“Barring any unforeseen negative developments, all indications are that the new-car market could well grow by at least 10% during the course of the year, which, if this does indeed occur, will establish another record year for the new-car market,” Glendinning concluded. — I-Net Bridge