New vehicle sales disappoint as expected

Mercedes-Benz is tooling up for the production of the new C-Class and this might have an impact on exports this year. Image: MBSA

Total new vehicle sales in January‚ at 53‚025 units‚ reflecting a decline of 3‚874 vehicles‚ or 6.8%‚ compared with sales in January last year.

Most major segments recorded year-on-year declines - with new car sales down 7%‚ light commercial vehicles falling 6.6%‚ heavy trucks tumbling 19.5% and sales of extra heavy trucks 6.1% lower.

Export sales for January‚ at 13‚960 units‚ reflected a sharp drop of 19.7% year-on-year.

The new car market was "under pressure" during the month‚ with sales down 7% at 38‚008 units. Naamsa said the car rental industry had once again made a strong contribution‚ accounting for 18.1% of new car sales in January.

Naamsa expected domestic new vehicle sales in 2014 "to experience head winds" mainly as a result of above inflation average new vehicle price increases‚ the slowdown in the economy and‚ more recently‚ rising interest rates.

Export sales during the first half of 2014 would be affected by the absence of any contribution by Mercedes-Benz‚ as the factory was in the process of being geared up for the production of the new model C-Class.

"Industry export sales‚ particularly light commercial vehicle exports‚ should however reflect strong growth from the middle of 2014 onwards‚" Naamsa said.

Sydney Soundy‚ head of vehicle and asset finance at Standard Bank‚ said the average number of sales for January since 2010 - excluding this year - had been 48‚321. January 2014 had exceeded the average by 4‚704 more vehicles.

Soundy said as 2013 ended as the third best year for domestic sales adding that the baseline from which to project growth in 2014 is fairly high.

"With that in mind and taking into account the last few months' lack of growth‚ it is expected that the year ahead will experience significantly muted growth," Soundy said.