Local automotive manufacturers continue to shine and show that the Nelson Mandela Bay region is the de facto automotive manufacturing region, clinching close on 40% of the total national sales in January.
According to the National Association of Automobile Manufacturers of SA (Naamsa), January new vehicle sales were 18,6% ahead of January last year, closing the month on 45,135 units. Passenger car sales rose 22,1% year on year, while the Light Commercial Vehicle (LCV) market grew 7,7% ahead of January 2010.
Overall, out of the total NAAMSA reported local sales of 38 934 units, 81% or 31 552 units represented dealer sales, 9.8% represented Sales to the Car Rental Industry, 5.8% sales to Government and 3.4% to Industry Corporate Fleet Sales.
Top Performing Manufacturers in January 2011:
- Volkswagen Group SA: 8 604 local units, 4 185 exported units and 12 789 total units.
- Toyota: 7 868 local units, 2 618 exported units and 10 486 total units.
- GMSA: 5 140 local units, 156 exported units and 5 696 total units.
- FMC: 4 705 local units, 515 exported units and 5 220 total units.
- Mercedes Benz SA: 3 301 local units, 940 exported units and 4 241 total units.
- BMW Group: 2 124 local units, 1 253 exported units and 3 377 total units.
- Nissan: 1 851 local units, 394 exported units and 2 245 total units.
- Renault: 809 local units, 0 exported units and 809 total units.
- Honda: 722 local units, 38 exported units and 760 total units.
- Chrysler SA: 572 local units, 0 exported units and 572 total units.
Industry total: 38 934 local units, 6 201 exported units and 45 135 units sold in total
Top Performing New Passenger Vehicles in January 2011:
- VW POLO Vivo – 2 163
- VW Polo – 1 702
- FORD Figo – 1 682
- MERCEDES C-Class – 1 275
- TOYOTA Corolla – 955
- BMW 3-Series – 891
- AUDI A4 – 865
- VW Polo Vivo Sedan – 823
- Chev Cruze – 817
- VW Golf 6 – 714
Top Performing New Light Commercial Vehicles in January 2011:
- TOYOTA Hilux – 2 626
- CHEV Corsa Utility – 1 262
- ISUZU KB – 1 022
- TOYOTA Quantum – 1 008
- FORD Ranger – 637
- NISSAN NP200 – 571
- FORD Bantam – 503
- VW Amarok – 406
- MAZDA BT-50 – 283
- TOYOTA Landcruiser PU – 254
Do some quick and dirty math to see that:
- Of the 45 135 units sold in total, 17 997 (39.87%) were manufactured within Nelson Mandela Bay.
- Of the 11 887 top 10 performing passeneger vehicles sold a total of 7084 (59.59%) were manufactured within Nelson Mandela Bay.
- Of the 8 572 top 10 performing light commercial vehicles sold a total of 2 690 (31.38%) were manufactured within Nelson Mandela Bay.
Looking at economic factors and developments which would affect the performance of the automotive industry during 2011, positive influences out-weighed potentially negative factors.
On the positive side, the following factors were relevant:
- Projected higher levels of economic activity, as well as the current positive sales momentum, would support higher new vehicle sales volumes into 2011.
- The continued improvement in new vehicle affordability, principally driven by the strong Rand and economies of scale production, as well as new model introductions, would further stimulate demand.
- Lower debt servicing costs following the 6½% decline in interest rates over the past two years would facilitate further increases in demand for credit for new vehicle purchases.
- Demand by the car rental industry was expected to remain relatively strong on the back of further growth in tourism and business travel.
- From a macro economic prospective, industrial policy remained supportive of growth and should translate into a higher gross domestic product growth rate and assist increased demand on the part of the growing middle class in South Africa.
On the negative side, the following factors were relevant:
- The level of household debt to disposable income of close to 80% remained a source of concern.
- The continuing buy-down trend and the extension in vehicle replacement cycles also remained an inhibiting influence.
- Rising inflationary pressures and the possibility of upward pressure on interest rates during the second half of 2011 could constrain demand for new vehicles.
- The South African economy and the automotive industry remained exposed to volatility in the exchange rate and, in the medium term, the possibility of exchange rate depreciation as the global economy recovered further.
- From an export sales performance perspective, the sustainability of the global recovery represented a key factor.
- Unexpected and unforeseen changes in vehicle taxation in South Africa was a further imponderable.
Factoring in the expected improvement in domestic sales together with further substantial anticipated growth in exports, domestic production of motor vehicles in South Africa during 2011 is expected to rise from the approximately 472 000 vehicles produced in 2010 to about 555 000 units in 2011 – an increase in vehicle production of about 17.5%.
Ford Motor Company of Southern Africa (FMCSA) spokesperson Dean Stonely commented on Ford’s performance as follows; “Ford ended 2010 in a strong position with increased market share, and that momentum will continue in 2011.” Stoneley continued, “January was a strong start to what we expect to be an impressive sales year for the South African new vehicle market”.
“Ford passenger car sales out-performed the market growth, 48,9% ahead of January last year and 33,7% up on December,” says Stoneley. “Figo sold 1,682 units to claim its Top Three spot in the passenger car rankings.”
“We are confident that the South African market will continue to show growth during 2011 in its return to levels enjoyed before the economic crisis,” says Stoneley. “Although the market continues to grow off a relatively low base, real gains and growth can still be expected this year.”