New car sales dip again

September 2010 sales were 16,6% ahead year on year, but 9,5% slower than the booming August numbers. August sales were the best South Africa has had since July 2008.

"The slowdown in sales month on month in September indicates that the acceleration of purchase decisions made during August ahead of the Emissions Tax was a real factor," says Ford SA's vice president marketing, sales and service, Dean Stoneley.

Interest rate cut, CO2 impact

"The decision by the Reserve Bank to cut interest rates another 0.5% during September will have gone some way to countering the increases in prices necessitated by the CO2 tax, and hopefully this will continue to stimulate the market during the last quarter."

Recently introduced interest rate cuts now places it at the lowest level since August 1979.

Although passenger car sales slowed 10.5% on August, September sales for the segment were up 26% on the same month last year. Light commercial vehicles were harder hit, however, slowing 5,8% year on year.

Medium, heavy and extra heavy commercial vehicles, as well as buses, recorded double digit growth year on year, only heavy commercials sales decreasing over the previous month.

Strike takes its toll

Ford Motor Company of Southern Africa (FMCSA) out- performed the market trend with passenger car sales being up by 37,7% on September 2009 versus the market increase of 26%. Sales were driven by strong sales of both Fiesta (607 units) and Figo (798) maintaining their positions in the Top 10 selling passenger cars.

"The stronger than expected August sales created pressure on stock volumes for the industry during September," says Stoneley. "Combined with the significant knock-on effects of the industrial action experienced during the month, these factors certainly affected September sales and will continue to be felt in October's numbers."

The top performing passenger car sales