Europe's car sales fall 5.0% in August

European new car sales fell by 5.0% year-on-year (y/y) in August after a 5.0% y/y rise in July‚ the European Automobile Manufacturers' Association reported on Tuesday (17 September).

The European Union (EU) is a significant market for South African new vehicle exports but as new registrations declined by 5.2% y/y in the first eight months of 2013‚ to 7‚841‚596 units - the lowest eight-month total since records started in 1990 - South African exports to the EU have been under pressure.

South African new vehicle exports fell by 22.9% y/y in August to 19‚284 units‚ in part due to industrial action‚ after easing by 3.6% y/y in July to 26‚608 units.

This compared with only a 3.5% rise last year to 277‚844 units‚ far less than the projected 320‚000 and 2008's 284‚211 units.

SA exports vehicles to 77 countries.

The National Association of Automobile Manufacturers of SA (Naamsa) initially expected exports to reach a 361‚300 units this year‚ but it has scaled back that forecast to only 337‚000‚ in part due to subdued demand in the EU.

From January to August‚ most major EU markets faced a downturn ranging from -3.6% in Spain to -6.6% in Germany‚ -9.0% in Italy and -9.8% in France.

The UK was the only country to perform better with a 10.44% increase.