Aggregate industry new vehicle sales totalled 47 778 units for March, the National Association of Automobile Manufacturers of South Africa (Naamsa) said on Wednesday.
This was a decline of 10 103 units, or 17,5%, compared with the 57 881 vehicles sold during the corresponding month last year.
Taking into account sales not reported in detail to Naamsa, industry aggregate sales declined by 18,4%, it said.
The figures, however, should be seen in context, Naamsa said.
”Firstly, new vehicle sales during March last year represented one of the highest sales months on record.
”Moreover, the Easter holidays fell into March this year and this had contributed to fewer selling days and the lower sales month,”
Naamsa said that on a positive note, the traditional seasonal strength in the new car market in March was evidenced by a modest improvement in the selling rate of new cars per day compared with February 2008.
For March 2008, new car sales at 27 724 units reflected a substantial decline of 8 314 cars, or 23,1%, compared with the 36 038 new cars sold during March last year.
”Demand in the new car market has weakened substantially in recent months as a result of the cumulative effect of past interest-rate increases and pressure on disposable income due to rising energy, food and fuel costs,” Naamsa said.
Negative consumer sentiment and business confidence had also continued to impact on sales.
For the rest of 2008, Naamsa expected the new car and light commercial vehicle sectors to remain under pressure as a result of tighter monetary conditions, growing inflationary pressures, high levels of household debt and a modest slowdown in economic activity levels.
However, the medium and heavy truck segments were expected to continue to perform relatively well registering positive growth during 2008.
Sales of vehicles in the medium and heavy truck segments of the industry maintained their upward momentum during March, albeit at a lower growth rate, with sales at 1 321 units and 2 117 units, respectively, recording an improvement of 33 units or 2,6%. — Sapa