World slump impacts on car sales

Total sales for the month were 41,336 units of which passenger vehicles accounted for 25,536 units, light commercials 19,332, medium commercials 815 units and heavy trucks and buses 1,867 units.

Total new passenger car sales in October declined by 9.7% when compared to September 2008, and were 34.8% down on October 2007, bringing the market for January to October 2008 to a level 23.2% below the same period for 2007.

“The decline in sales experienced in October comes directly in the wake of the global financial crisis and is not necessarily the beginning of a new trend of increased downward pressure on our market,” says Johan van Zyl, President and CEO of Toyota South Africa.

“As we moved into October the full extent of the financial crisis facing the world became evident. Aside from the negative impact on equities, the global crisis amplified underlying negative factors in our own economy to place serious pressure on the rand and undermine business and consumer confidence.”

During October Toyota's share of the market was 26% with sales of 10,753 vehicles. The company's export sales for the month were 11,238 units for a 40% share of all exports. Toyota's share of the combined domestic and export market was 31.7%.

The Hilux was once again the top selling vehicle in South Africa with deliveries of 2,608 units. The Corolla range occupied third on the total sales log (2,241 sales) while the popular Yaris was placed fourth (1,756 units). Toyota was the top selling brand in the passenger, light commercial, and medium commercial sectors for the month.

Suzuki Auto South Africa (SASA), which only started retailing its range of passenger cars and sport utility vehicles (SUVs) in June this year, recorded its best ever market share with 468 sales (which is equal to about 2% of the combined passenger and SUV sector).

Kazuyuki Yamashita, managing director of SASA, said this was the best month Suzuki has had in the local market.

“Traditionally, seasonal cycles see the demand for new vehicles softening in October because many industry sales incentive schemes come to an end in September.”

Yamashita believes that Suzuki will be able to maintain its positive performance in the months ahead. “Given current economic trends and conditions, we are forecasting Suzuki retail sales of between 475 and 500 units for November. We are also confident of our ability to maintain a market share in excess of two percent.”

Volkswagen of South Africa Sales and Marketing Director Mike Glendinning said the further sharp decline in demand for new passenger cars in October - with the selling rate of new cars per day falling to its lowest level since October 2003 - reflected an ongoing deterioration in economic circumstances in general.

The Uitenhage-based automotive manufacturer sold 5,431 passenger cars in October. “Once again, Polo/Classic was the number one selling passenger car with sales of 2,317 units. Citi Golf also impressed with sales of 1,222 units,” he said.

“In addition, more than 800 units were sold in the premium segment by the Audi Brand, with the all-new A4 sedan selling an encouraging 447 units.”

He said by the end of October, with the JSE some 40% down from May 2008 levels, and with house prices declining, the wealth base of South African households had weakened considerably, further undermining the overall financial position of households already burdened with historic high levels of debt.