Aggregate domestic new vehicle sales recorded steady gains in September, led by upward momentum in the new light commercial vehicle and new car segments according to the latest results by the National Association of Automobile Manufacturers of South Africa (NAAMSA).    

Total sales

September 2017 saw total new vehicle sales at 50 675 units – an increase of 7% from the 47 357 vehicles sold in September last year.  Export sales for the month registered at 36 359 vehicles – an improvement of 3 595 units compared to the 32 764 vehicles exported in September last year.

Overall, out of the total reported Industry sales of 50 675 vehicles, an estimated 40 654 units or 80.2% represented dealer sales, an estimated 13.9% represented sales to the vehicle rental Industry, 3.0% to government and 2.9% to Industry corporate fleets.

New cars and LCVs

The positive trend of upward momentum was further reflected by the September, 2017 new car market which recorded a gain of 1 868 cars with 33 669 units being sold this year compared to the 31 801 new cars sold during the same period last year.

The car rental Industry had accounted for an estimated 18.9% of new car sales in

September, 2017.

Domestic sales of industry new light commercial vehicles, bakkies and mini buses reflected a substantial improvement of 11.7% with 14 523 units sold during September, 2017 compared to the 13 003 light commercial vehicles sold during the corresponding month last year.  This was on top of the improvement in light commercial vehicle sales in recent months.

Medium and heavy truck segments

The medium and heavy truck segments of the Industry reflected a mixed performance and at 692 units and 1 791 units, respectively, had recorded a fall of 80 vehicles or a decline of 10.4%, in the case of medium commercial vehicles, and, in the case of heavy trucks and buses, a slight improvement of 10 vehicles or an increase of 0.6 % – compared to the corresponding month last year.

The figures reflected generally poor investment sentiment in the economy.

The strong gains in the September vehicle exports were in line with expectations and total 2017 export
numbers were expected to post a marginal improvement on 2016.

“Over the past four months, the domestic automotive industry has held up well in the current challenging economic environment,” the Association said.

“A number of factors had contributed to the improved momentum in local sales and these included reduced new vehicle pricing pressures currently at an annualized rate lower than inflation, the July, 2017 reduction in interest rates and continued highly attractive sales incentives,” it added.