Volkswagen's sales during August the highest in 2012

The record figure was aided by Polo Vivo (3 714 units) which achieved its best ever monthly sales since its launch in March 2010. Polo Vivo was also the best selling model in the total new vehicle market in August, while Polo was the second best selling model in the new passenger car market with 2 355 units.

In August 2012, 40 345 new passenger cars were sold in South Africa. The market grew by 6.6% over July 2012 and, compared to August 2011 sales increased by 11.6%. This has resulted in sales growing by 12.5% above the same period for 2011.

Demand for passenger cars

The selling rate of new cars per day in August 2012 grew to a level last seen in August 2007. This was largely supported by seasonally strong sales to car rental companies. An average of 1 566 new cars were sold per day during the month. A similar rate was only previously achieved at the peak of the last boom in the new car market in 2006.

"The new car market has been characterised by strong levels of demand for new passenger cars. With interest rates at the lowest level in 38 years, debt servicing costs for households are low and sufficient credit is available to service demand for new cars. New car prices are growing at less than 3% on an annual basis and in real terms, after adjustment for inflation, have been in negative territory for over two years," said Mike Glendinning, director of sales and marketing at Volkswagen.

Impact of low interest rates

"The positive impact on new vehicle affordability of low interest rates and low growth in new vehicle prices continues to be further enhanced by the intensely competitive nature of the new car market delivering attractive offers to consumers. Replacement demand also continues to play a strongly supportive role for the new car market and the introduction of new models to the market continues to entice consumers," added Glendinning.

"While economic growth is likely to remain low in the second half of 2012, based on the factors supporting demand for new cars, the new car market for 2012 is likely to end up in excess of 10% of the market recorded in 2011," he concluded.

The Audi brand sold 1 500 units - its highest sales ever recorded in August. The top seller was the A4 Sedan/Avant which sold 397 units. Volkswagen commercial vehicles sold 812 units and 515 of these units were Amarok single and double cab models.