Volkswagen sold most passenger cars in September

For the third consecutive month, Polo Vivo was the best selling new car in the country with 3 386 units. Meanwhile, Polo was the second best selling model in the new passenger car market with 2 383 units. The Audi Brand achieved its sixth consecutive record month with the delivery of 1 510 units in September. The top selling model was the A4 Sedan/Avant which sold 673 units.

In the light and medium commercial vehicles segments, Volkswagen Commercial Vehicles sold 751 units and 484 of these units were Amarok single and double cab models.

Momentum is moderating

During September 39 496 new passenger cars were sold in South Africa. The market shrunk by 2.1% compared to August 2012. However, the market grew by 4.4% when compared to September 2011. From January to September 2012, the market was up by 11.5% compared to the same period in 2011.

"While the growth momentum in the new car sales cycle appears to be moderating, overall buoyancy in demand for new passenger cars continues. Even though the market in September was slightly down on the previous month, the selling rate of new cars per day was up 5.9%. An average of 1 659 new cars were sold per day during the month, the strongest selling rate per day since August 2006, a month after the previous boom in demand for new passenger cars peaked out," said Mike Glendinning, director of sales and marketing at Volkswagen.

Declining prices

"Despite uncertain economic circumstances, the demand for new passenger cars continues at robust levels with the market, of which around 45% is comprised of lower priced entry level vehicles, being driven by powerful supporting factors. In real terms, new vehicle prices have been declining for over two years, a development that has been amplified by an intensely competitive trading environment. This has resulted in significant incentivisation that has further improved the affordability of new cars. Interest rates are at a 38 year low and debt servicing costs remain at low levels as thus promoting growth in instalment sales credit, now at 16.5% on an annual basis," he added.

"Replacement demand remains a solid driving force as a foundation for new car demand and a steady stream of new model introductions with enhanced value offerings continue to entice consumers. On balance, the wealth effect is also supportive of new car demand with house prices moving sideways, but no longer declining, and the stock exchange trading at record high levels. In these circumstances the outlook for the new car market in 2012 remains for growth exceeding 10% over 2011," concluded Glendinning.