Healthy jump in new car sales

Total sales for March topped at 36,331 units compared to the 32,613 units sold in February.

Although this is a significant jump it must be seen against the background of March traditionally being a strong sales month because of across the board price increases which occur in April each year.

Passenger and Light Commercial Vehicles (LCV) drove sales last month, showing 12.6% and 10.5% growth respectively over February.

However, the Medium, Heavy, Extra Heavy, and Bus markets continued to be depressed.

“The recovery versus the year to date tracking rates is encouraging, but the market continues to be down 30% versus 2008,” says vice president sales and marketing, Ford Motor Company of Southern Africa, Jacques Brent. “We are beginning to see some stimulation from interest rate cuts and the revision of credit vetting scorecards by the banks.”

Ford Motor Company of Southern Africa had its second successive month of growth, once again out-pacing the industry. FMCSA passenger sales grew 25.8% to 2,630 units over February spurred by an excellent sales month for Fiesta (1,072 units sold).

Top seller for Mazda was the Mazda3 with 406 units registered in March. LCVs remained stable with Ranger accounting for 582 sales for FMCSA.

“While March sales have been a spark of hope, the SA motor industry will remain under pressure in the coming months,” says Brent. “Consumers will experience fuel price hikes and April sales will be pressurised by public holidays and resulting fewer selling days, so the coming month's figures are expected to be lower. But the indication of renewed confidence is there and provides a strong case for further interest rate cuts.”