NAAMSA MEDIA RELEASE :COMMENT ON THE JUNE 2014 NEW VEHICLE SALES STATISTICS
In amplification of the new vehicle sales statistics for the month of June, 2014 – the Association
commented that domestic new vehicle sales had shown some resilience despite the South African
economy continuing to experience pressures in the form of slower economic growth, high levels of
industrial action, rising inflationary pressures and exchange rate vulnerability. The domestic marketwas
expected to continue to face head winds over the short to medium term in sharp contrast to
developments internationally which were characterised by expanding vehicle sales in China, the United
States and Europe. However, continued improvement in global economic conditions would benefit SA
vehicle exports during the second half of 2014 and in 2015.
In the event, June 2014 aggregate new vehicle salesat 52 837 vehicles had registered a modest declineof
1 251 vehicles or a fall of 2.3% compared to the 54088 vehicles sold in June last year. The June, 2014
export sales total at 24 024 units reflected a marginal decline of 195 vehicles or a fall of 0.8% compared
to the 24 219 vehicles exported in June last year.
Overall, out of the total (disaggregated) reported Industry sales of 52 837 vehicles, 83.8% represented
dealer sales, 8.3% represented sales to the vehiclerental Industry, 4.4% to Industry corporate fleetsand
3.5% to government.
The new car market had remained under pressure during June, 2014 and at 35 355 units reflected a
decline of 2 017 units or a fall of 5.4% compared to the 37 372 new cars sold in June last year.
Domestic sales of new light commercial vehicles, bakkies and mini buses at 14 556 units during June, 2014
had shown some recovery and reflected an increase of 621 units or 4.5% compared to the 13 935 light
commercial vehicles sold during the corresponding month last year.
Compared to the corresponding month last year, sales of vehicles in the medium and heavy truck
segments of the Industry at 942 units and 1 984 units, respectively, reflected a mixed performance with
medium commercial vehicle sales showing a decline of 109 units or 10.4%, whilst heavy trucks and buses
had registered an improvement of 254 units or a strong gain of 14.7%.
Industry new vehicle exports during June, 2014 at 24 024 vehicles had registered a marginal decline of
195 units or a fall of 0.8% compared to the 24 219 vehicles exported in June last year. During the second
half of 2014, the momentum of Industry vehicle exports was expected to improve significantly.
South Africa urgently needed stronger growth, faster employment creation and a narrowing of the
current account and fiscal deficits. The restoration of and improvement in domestic and foreign investor
confidence represented a necessary pre-condition inthis regard.
The current strike in the steel and engineering Industry was most unfortunate in that it would further
undermine investment sentiment and, if prolonged, would increase the risk of the South African economy
moving into recession. The impact on vehicle production and exports would start to be felt if the
industrial action continued beyond two weeks.
The outlook for the automotive sector for the balance of 2014 was mixed. Domestic sales would
continue to be affected by general economic conditions, exchange rate induced new vehicle price
increases and upward pressure on interest rates. The domestic market was likely to register a decline, in
volume terms, of around 5.0% compared to 2013 with the main impact in the new car and light
commercial vehicle sectors. The heavy and extra heavy truck markets were expected to continue to hold
up well. In the case of exports, further improvement was anticipated during the second half of 2014 on
the back of better global economic growth.
Tuesday, 1st July 2014