Vehicle sales surged in May, rising by 20.7% to 50 229 from 41 625 units in May 2011, the National Association of Automobile Manufacturers of South Africa (Naamsa) said today.
The 20.7% growth was above the growth rate in industry total sales of 9.4% for the first five months of the year.
New car sales in May were strong at 34 820 units (including Mercedes Benz South Africa). This was an improvement of 20.8%, compared to the 28 821 new cars sold in May 2011. The strong sales were assisted by new model introduction and an improvement in stock availability.
“The year-on-year growth momentum in May new car sales had improved, rising to its best level in the past eight months with year-to-date new car sales — 11.3% ahead of the corresponding five months of 2011. New car sales during May 2012 recorded the highest daily selling rate since June 2007,” said Naamsa.
Overall, out of the total reported industry sales of 47 717 vehicles, excluding (MBSA), 90.3% represented dealer sales; 4.3% represented sales to the vehicle rental industry; 3.8% to industry corporate fleet sales and 1.6% sales to government.
“From a seasonal perspective, sales to car rental companies should improve from June 2012 onwards as the car rental industry started to re-fleet,” noted Naamsa.
Including estimates for MBSA commercial vehicle sales by segment, sales of industry new light commercial vehicles, bakkies and mini buses at 12 907 units in May reflected an increase of 2 287 units or 21.5% compared to the 10 620 light commercial vehicle sales during May 2011.
Sales of vehicles in the medium and heavy truck segments of the industry, at an estimated 881 and 1 621 units, recorded an increase of 135 units or 18.1% in the case of medium commercial vehicles and a 12.7% increase in the case of heavy trucks and buses, compared to the corresponding month last year.
According to the association, most manufacturers in these sectors reported strong order books going forward.
Exports of South African produced motor vehicles, including MBSA, at 22 620 registered an improvement of 560 units or 2.5%.
Meanwhile, industry export sales were expected to improve over the balance of the year.
“The industry’s export performance would remain a function of the direction of the global economy. Vehicle exports into Europe were likely to continue under pressure as a result of the recession and debt crisis in the Eurozone,” noted the association.
The on-going improvement in the financial position of consumers, low interest rates, continuing improvement in vehicle affordability and new model introductions among others will lend support to the domestic market.
“Continued growth in consumer expenditure and public sector infrastructural investment would also support domestic new vehicle sales. The recent sharp depreciation in the exchange rate was also likely to result in pre-emptive buying over the next few months as consumers sought to purchase vehicles to avoid the possible impact of the lower exchange rate on new vehicle prices.”
Port Elizabeth based manufacturer, GMSA were pleased with their delivering 5 845 new vehicles for 11,6% share of the market.
General Motors South Africa (GMSA) delivered 5 845 new vehicles during May to capture a total market share of 11,6% a figure 0,5% up on its share in April. The new Chevrolet Utility contributed 1 898 sales to GMSA’s total as the leader in the sub-1 ton light commercial vehicle market. Together with sales of 1 012 Isuzu KB pick-ups, GMSA captured a 23,6% share of the light commercial market as the second ranked supplier in this sector.
“The increase of 20,7% year-on-year, and 17,9% up on April provide a misleading view on the growth rate of the industry”, says Malcolm Gauld, GMSA’s Vice President Sales and Marketing. “Total sales of 50 228 units were slightly below our expectations but still provided a welcome boost to year on year growth. The industry total for the first five months stands at 228 070 vehicles for a gain of 9,4% on the same period last year. May was the 30th successive month that the motor industry has experienced year-on-year growth.
“May saw strong support at dealer level with 43 088 of total sales delivered through the dealer channel, a good indicator of private buyer participation in the market. Passenger vehicles accounted for 34 820 sales, up 20,8% on May last year. Light commercial vehicles contributed 12 907 units to the total to show a gain of 21,5% on May last year. This number provides an indication of positive activity in the business sector but is also indicative of the inventory position in the market.
“There was significant new model activity in the market during May together with a high level of promotional activity that will have supported sales. There is a strong accent on affordable vehicles at this time with excellent value propositions for customers. An example of this is the repositioning of the Chevrolet Spark, now a locally produced model for GMSA, with significant price reductions announced with the localisation of this model. We can expect further excitement at the lower end of the market with tangible benefits for the customer, particularly for the first time new car buyer.”
“Looking ahead we see no firm basis to increase volume forecasts for the year. Year-on-year sales are approaching the upper limit of those forecasts but this may not be sustainable. High fuel costs and pressure on the Rand are factors that will likely impact on the market in the months to come.”
The Uitenhage based manufacturer Volkswagen Group South Africa maintained its lead position in the passenger car market with total sales of 8 260 units and market share of 23.7 % in May 2012.
In May 2012, a total of 34 820 new passenger cars were sold in South Africa, an increase of 18% when compared to April 2012 and a growth of 20.8% against the same period in 2011. From January to May 2012, the market has improved by 11.3% against the same period in 2011.
“The passenger car market in May 2012 performed above expectation. From the perspective of the seasonal pattern of demand for new passenger cars in South Africa, May is usually relatively quite. The month recorded the highest selling rate of new cars per day since June 2007. It continued a slow but steady improvement in the underlying momentum in demand that has been evident in the first months of 2012,” said Mike Glendinning, Director: Sales and Marketing, Volkswagen Group South Africa.
“The more robust than expected performance of demand for new passenger cars in the first half of 2012 is, however not fully supported by other key economic indicators. GDP growth has disappointed, reflecting an improvement of only 2.7% seasonally adjusted and annualised during the first quarter of the year. Manufacturing production in March 2012 decreased by 2.7% compared with March 2011. Despite these developments the consumer demand side of the economy continues performing relatively well. This is reflected not only in the performance of demand for new passenger cars, but also in retail sales which in real terms increased by 6.8% year-on-year in March 2012. It was also supported by ongoing growth in demand for instalment sales finance, which in April grew to 12.5% annualised, the highest rate of growth since January 2009,” added Glendinning.
“Volkswagen Group South Africa maintained its dominance in the passenger car market for the fifth consecutive month in 2012. Polo Vivo was the best-selling Brand in the country with 2 789 units. At the same time, Polo was the second best-selling Brand in the passenger car market with 2 343 units. Both models are still market leaders in the A0 segment, in spite of the new models being introduced in the most competitive segment in South Africa,” explained Glendinning.
The Audi Brand recorded its best May sales yet with 1 400 units sold. Audi’s performance was ably supported by the A4 sedan/Avant with the sales of 365 units as well as the new Q3 (213 units) and A1 Sportback (101 units) which were both launched in May 2012.
Volkswagen Commercial Vehicles reported sales of 575 units and 249 of these units were Amarok Single and Double cabs. Supply constraints in Argentina continue to impact on the delivery of the Amarok range into South Africa.
Alan Straton
Latest posts by Alan Straton (see all)
- Soccer Laduma Sets Out a Bonus and Deposit Guide for SA Punters This Spring - 30 September 2026
- Alu Door & Window Centre Readies Mpumalanga Homes for the Summer Storms - 30 September 2026
- If AI Can Now Do the Work, Who Checks the Work? - 29 September 2026
- UK Music Titans Marc Marot & Jeremy Marsh Join #MEX26 in Cape Town - 29 September 2026
- The Countdown On – Mind Matters Is Taking Over Cape Town Before Taking the Conversation Global - 28 September 2026
