A ”significant” slowdown in year on year growth in new car sales suggests that interest rate increases are starting to affect demand, the National Association of Automobile Manufacturers of South Africa (Naamsa) said on Monday.
The November 2006 new car sales, however — a record level for the month of November — reflected a relatively small improvement of 2,1% compared with new cars sold during November 2005.
”[Also] … the new car market had shown a decline of 2 499 units or 6,7% compared to the 37 292 units sold during the previous month of October 2006,” the association said in a statement.
According to the association, on the year-to-date basis, the new car market, in terms of new car sales reported through Naamsa, remained at 14,1% ahead of the corresponding months last year.
”The significant slowdown in year on year growth in new car sales suggested that interest rate increases were starting to impact on demand,” it said.
The year-on-year growth rate in respect of new light commercial vehicles sales, bakkies and minibuses had improved during November 2006 by 26,4% compared with sales in November last year.
The November sales of light commercial vehicles are virtually unchanged from the 13 397 unit sales during October 2006.
Naamsa said it suspects that over the short to medium term the growth in the new-vehicle market segments, particularly the new car market, is likely to show further consolidation. – Sapa