Record high for new car sales

Over the period, aggregate new passenger car sales climbed 28.9% to 29 530 year on year in November from 22 916.

The association said new vehicle sales show further improvement supported, specifically in the new car segment, by strong retail business.

But NAAMSA said new passenger car sales fell 4% month on month in November, compared to 30 750 in the previous month of October.

Emissions tax pushes new-car prices up

"This was probably due to the lagged impact and cost raising effect of the new car emissions tax which had increased new-car prices, on average, by approximately 3%," NAAMSA said.

The year to date improvement in sales stood at 29.9% slightly down on the 30.1% year to date improvement recorded during October 2010.

Sales of industry new light commercial vehicles, bakkies and minibuses increased 28% to 12 622 year on year in November 2010 from 9 858.

On a year-to-date basis, light commercial vehicle sales reflected an improvement of 13.1%.

Sales of medium vehicles surged 47.9% yearn on year in November to 791.

In the heavy truck and bus segment, sales rocketed 54.2% to 1428.

"The strong recovery in sales of heavy and extra heavy trucks in recent months indicated renewed fixed investment momentum in the economy," NAAMSA said.

Exports rise

NAAMSA said new vehicle exports rose to their highest monthly total for the year with export sales increasing 24.2% to 28 550 from 22 985.

Aggregate export sales reflected further gains as manufacturers' output recovered from the loss of production due to industrial action experienced during the months of August and September of 2010.

The decline in interest rates over the past two years, improved new vehicle affordability, further gradual improvement in finance approval rates, pent up replacement demand and new model introductions should continue to support new vehicle sales going forward, NAAMSA said.

New vehicle sales over the medium term would remain a function of the performance of the domestic economy and, in the case of export sales, the sustainability of the recovery in the global economy.

For 2011, domestic new car sales, at this stage, were projected to improve by between 7% and 10% in volume terms. New commercial vehicle sales, on the back of higher projected economic growth, could rise by up to 15%.