Sharp falls in domestic new vehicle sales were reflected for the month of September. The National Association of Automobile Manufacturers of South Africa (NAAMSA) commented on the figures and saying the recession in the domestic new vehicle market has accelerated significantly, with all major segments reflecting double digit or near double digit declines.

Given the present difficult economic environment in SA, the negative trend was expected to continue over the medium term, the association said. Surprisingly, export sales of new motor vehicles had also reflected a year on year decline.

Vehicle sales figures

Vehicles sales for the month of September were:

• New vehicle sales: 47 399 units registered 7 904 vehicles (a decline of 14.3% compared to the 55 303 vehicles sold in September last year).
• Industry export sales: 32 876 vehicles (a decline of 6.5% compared to the 35 154 vehicles exported in September last year).
• Consumer dependent new car market remained under pressure at 31 957 units (a decline 14.4% compared to the 37 325 new cars sold in September last year).
• Car rental industry accounted for 19.9% of new cars sold in September.

Overall, out of the total reported Industry sales of 47 399 vehicles, an estimated 38 342 units or 80.9% represented dealer sales, 14.3% represented sales to the vehicle rental industry, 3.4% represented industry corporate fleet sales and 1.4% sales to government.

Light, medium and heavy vehicle figures

Domestic sales of industry new light commercial vehicles, bakkies and mini buses at 12 879 units during September had also turned sharply weaker reflecting a decline of 2 243 units or a fall of 14.8% compared to the 15 122 light commercial vehicles sold during the corresponding month last year.

In the medium and heavy truck segments of the Industry, 783 units and 1 780 units were sold respectively. The sector has also seen substantial falls in the case of medium commercial vehicles that saw a decline of 9.0% and heavy trucks and buses saw a decline of 10.8% compared to the corresponding month last year.

Vehicle export figures

Industry new vehicle exports saw a decline of 2 278 vehicles, amounting to a 6.5% decrease compared to the 35 154 vehicles exported in September last year, which represented the record for vehicle exports in a single month. The momentum of new vehicle exports is still expected to improve for 2016.

For the remainder of the year and into 2017, new vehicle exports should contribute positively to SA’s current account of the balance of payments reinforced by lower vehicle imports on the back of declines in the domestic market, NAAMSA said.

Low levels of consumer and business confidence and relatively high interest rates will continue to pressurise sales of new motor vehicles, particularly new cars, the association added.