The National Association of Automobile Manufacturers of South Africa (NAAMSA) sales figures for July reveal an improvement on the corresponding month last year, but NAAMSA caution that there are clear signs of slower underlying momentum in demand for new cars. The July 2011 aggregate industry domestic sales have improved by 4 358 units or 10.5% to reach 45 703 vehicles from 41 345 vehicles sold during July last year. Total year to date domestic sales in calendar 2011 remained 15.0% ahead of the corresponding seven months in 2010. July, 2011 export sales at 25 147 vehicles had registered modest growth rising by 1 893 units or 8.1%.
See how our local Motor Manufacturers (Volkswagen and GMSA) are faring against each other and in comparison to the total vehicles sold in South Africa below:
See how our local Motor Manufacturers (Volkswagen and GMSA) are faring against each other in comparison with domestic sales and exports against the total vehicle exports from South Africa below:
Overall, out of the total July 2011 industry reported sales of 45 703 vehicles, 80.9% or 36 986 units represented dealer sales, 12.8% represented sales to the car rental industry, 3.4% sales to government and 2.9% represented industry corporate fleet sales.
GMSA had the following comments on the July sales figures:
General Motors South Africa (GMSA) continued on an upward sales trend through July reporting 5 328 sales for the month. Ranked a strong third amongst South African vehicle manufacturers, the company’s sales for the month were up 10,3% versus July 2010 with year to date volume now 35,7% up on the first seven months of last year and market share up by 1,8%. Industry sales for the same period are up by 15%.
“While the motor industry recorded its 19th consecutive month of increased sales on a year-on-year basis there is evidence of a softening of demand as we move into the second half of the year,” says Malcolm Gauld, GMSA Vice President, Sales and Marketing. “We are entering a phase of cautious optimism where growth is expected to continue through the year but at a more restrained pace than we saw through the early part of the year. The high end forecasts put forward at the beginning of the year are unlikely to be met now but there remains every possibility that the industry can still deliver double digit growth for the year. A solid performance given the current state of the global economy.”
GMSA’s range of passenger and light commercial vehicles continues to enjoy a high level of customer support. In the passenger sector the Spark is prominent in the entry level segment of the market ranking 9th in total passenger vehicle sales during the past month. July saw a further expansion of the Chevrolet range of vehicles with the introduction of the Orlando, and exciting new MPV.
In the light commercial sector GMSA ranked second with 2 432 sales for a 21,3% share of the market. Key to this success is the ongoing popularity of the Chevrolet Utility which recorded sales of 1 588 units for the month to complete 76 months of continuous segment leadership accounting for 13,9% of all light commercial vehicle sales on its own.
VWSA had the following comments on the July sales figures:
During July 2011 a total of 32 030 new passenger cars were sold in South Africa. Total new passenger car sales in July increased by 1.9 percent when compared to June 2011. The market did, however, grow by 9.7 percent when compared to July 2010, bringing year-to-date sales of new passenger cars in 2011 to a level 18.2 percent above January to July sales last year.
Volkswagen Group South Africa is edging ever closer to selling 8 000 passenger units in one month – with 7 766 sales during July. “This equates to a 24.2 percent share of the total passenger market – again topping sales charts,” said Mike Glendinning, Director of Sales and Marketing, Volkswagen Group South Africa.
“The uniquely South African Polo Vivo remains in high demand with 3 142 sales and was not surprisingly the top seller in the market once again. With sales of 2 111 units, the Polo was the second best-selling vehicle in the country. These two products alone make up 16.4 percent of the entire passenger market.”
Audi continues to make gains in the premium market with retail sales of 1 248 units, achieving 3.9% market share.The A4 Sedan/Avant range were once again the Brand’s top seller with sales of 371 units, Glendinning continued.
“In the light commercial segment, the introduction of the Amarok Single Cab continued to help entrench Volkswagen Group South Africa’s footing in that market. Sales of 696 units of both the Single and Double Cab Pick-ups were recorded during the month.”
The three Brand’s cumulative sales put Volkswagen Group South Africa at the top of the automotive industry’s sales for the fourth month in row now – having sold a total of 8 717 units – 19 percent of the total market.
“While probably slightly below general expectations, the performance of the new passenger car market in July was consistent with the emergence of slower underlying momentum in demand for new cars. While some after effects of the Japanese tsunami in March are probably still affecting supply of product and components, indications are that growth in the new car sales cycle has slowed.”
“Demand for new passenger cars in coming months will be supported by not only seasonal strength in demand from rental car companies, but also by an acceleration in the rate of decline in real new vehicle prices and a likely intensification in competitive activity in the market,” concluded Glendinning.
Alan Straton
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