NAAMSA MEDIA RELEASE :COMMENT ON THE November 2013 NEW VEHICLE SALES STATISTICS
In amplification of the new vehicle sales statistics for the month of November, 2013 – released today for public consumption via the website of the Department of Trade & Industry - the Association commented that the latest new vehicle sales data reflected the effects of a slowing economy, a moderation in consumer demand as well as supply disruptions due to the ongoing strike in the car carrier Industry. In the event aggregate November, 2013 domestic new vehicle sales at 50 806 units showed a decline of 2 459 vehicles or 4.6% from the 53 265 units sold in November last year. Export sales had also declined year on year by 4.8%.
Overall, out of the total reported Industry sales of 50 768 vehicles, about 42 183 units or 83% represented dealer sales, 8.5% represented sales to the vehicle rental Industry, 3.2% to Industry corporate fleets and 5.3% to government.
During November, 2013 a total of 34 267 new cars were sold which represented a relatively steep decline of 2 164 units or fall of 5.9% compared to the 36 431 new cars sold in November last year. Supply disruptions due to the car carrier Industry strike and a moderation in consumer demand had probably been the main contributors to the lower sales number. However, the car rental industry had once again contributed positively to the November sales numbers and accounted for 12.1% of new cars sold during the month.
Domestic sales of industry new light commercial vehicles, bakkies and mini buses at 13 719 units during November, 2013 reflected a decline of 610 units or a fall of 4.3% compared to the 14 329 light commercial vehicles sold during the corresponding month last year.
Sales of vehicles in the medium and heavy truck segments of the Industry at 1 003 units and 1 817 units, respectively, had recorded an increase of 113 units or 12.7%, in the case of medium commercial vehicles, and an increase of 202 units or 12.5% in the case of heavy trucks and buses - compared to the corresponding month last year. The continuing strength in sales of trucks was indicative of spending on infrastructural related projects and suggested some improvement in capital investment trends.
Industry new vehicle exports during November, 2013 at 27 154 vehicles had registered a decline of 1 366 units or a fall of 4.8% compared to the 28 520 vehicles exported in November last year. This was due to the lagged effects of the September and October, 2013 automotive Industry strike and the current disruptions, experienced by some exporters, as a result of the ongoing industrial action in the car carrier Industry. 2013 Industry aggregate exports would at best come in at about 281 000 vehicles compared to the 278 000 vehicles exported in 2012. The momentum of vehicle exports was expected to improve in 2014 as export programmes were ramped up and particularly exports of light commercial vehicles were expected to increase substantially in the New Year.
Domestically, expectations of lower economic growth and above-inflation new vehicle price increases would contribute to a more difficult trading environment and further moderation in sales growth momentum. Despite a less promising outlook for the automotive sector, the year as a whole would still represent the second or third best year on record in terms of domestic sales. The prevailing low interest rate environment should lend some support to the domestic market together with replacement demand, the highly competitive trading environment, attractive incentives and high technology new model introductions. Export sales would remain a function of the performance and direction of global markets with some regions notably North America, Africa and Asia offering above average growth opportunities.
Monday, 2nd December 2013