Year-on-year new-car sales kept on declining last month although total vehicle sales were up, the National Association of Automobile Manufacturers of South Africa (Naamsa) said on Monday.
Naamsa said 36 041 cars were sold in March — compared to 37 496 in the same month last year. This represented a decline of 3,9% or 1 455 units.
Naamsa director Nico Vermeulen blamed interest-rate hikes, recent price increases and personal debt levels.
”The sales figures provided further evidence that consumer demand had continued to adjust to last year’s interest-rate rises and recent car-price increases.
”These factors, together with continued high personal debt levels, were clearly beginning to impact on consumer spending and new car purchasing.”
In February this year, new car sales of 32 319 revealed a drop of 81 units or 0,25% from the February 2006 sales.
Despite the weakness in new-car sales, aggregate combined new vehicle sales at 57 899 units registered an improvement of 1 666 units or 3% compared with the 56 233 vehicles sold during March 2006.
Vermeulen attributed this to sales of new commercial vehicles, which he said were recording improvements.
”The new-vehicle sales had again recorded a mixed performance with the new-car market showing signs of increased pressure and in contrast, new commercial-vehicle sales recording further improvements.”
The 18 619 new commercial vehicles sold during March 2007 reflected an improvement of 2 548 units, or 15,9%, compared to the 16 071 sales of the corresponding month last year, Vermeulen said.
”Supported by strong investment sentiment and infrastructural spending, sales of vehicles in the medium- and heavy truck segments also reflected a strong upward momentum at 1 292 units and 1 947 units respectively, compared with sales of heavy trucks and buses sold in March 2006.”
He said exported vehicle sales showed a decline of 8,3%.
”The industry’s performance domestically would remain a function of the overall performance of the South African economy, the direction of interest rates and new vehicle pricing,” said Vermeulen. — Sapa