Press Release: Comment on the July 2019 New Vehicle Sales Statistics

PRETORIA - Thursday, August 01, 2019: The National Association of Automobile Manufacturers of South Africa [NAAMSA] said that the new vehicle sales declining trend continued into July 2019 with lower passenger car sales again been offset by growth in all of the commercial vehicle segments. Reflecting on the new vehicle sales statistics for the month of July 2019 released today for public consumption via the website of the Department of Trade and Industry, NAAMSA confirmed the following aggregate sales:

DOMESTIC NEW VEHICLE SALES

46 077

3.7
compared to July 2018 (47 856)

EXPORT SALES

34 297

22.1
compared to July 2018 (28 081)

PASSENGER VEHICLES

29 477

8.2
compared to July 2018 (32 094)

LIGHT COMMERCIAL BAKKIE & MINI BUSES

13 852

2.9
compared to July 2018 (13 461)

MEDIUM TRUCK SEGMENTS

801

14.9
compared to July 2018 (719)

HEAVY TRUCKS & BUSES

1 947

21.4
compared to July 2018 (1604)

TOTAL INDUSTRY VEHICLE SALES

46 077

DEALER SALES

80.2%(estimated 36 974 units)

SALES TO VEHICLE RENTAL INDUSTRY

14.0%

SALES TO GOVERNMENT

2.2%

INDUSTRY CORPORATE FLEETS

3.6%

The lowering of the interest rate by 25 basis points as well as relief from lower fuel prices during July offered some reprieve for financially strained consumers. The ABSA Purchasing Managers’ Index measured 52,1 index points in July 2019, the first reading above the neutral 50-point mark since December 2018, signalling an expansion in activity. The increase in all commercial vehicle segments therefore bodes well for the remainder of the year. However, in a low growth environment other structural reforms that deal with underlying issues in the economy need to complement the lowering in the interest rate for sustained improvement in business and consumer confidence going forward. The turnaround anticipated for the second half of the year has not realised in the new vehicle market yet. The export performance, however, remains strong and industry vehicle production levels would continue to benefit from strong vehicle export sales.