December new car sales up 0.2% to 46,501 units

New car sales rose by a measly 0.2% in December, reflecting the tough economic times being experienced in South Africa. Image: kalcutta Fotolia

The National Association of Automobile Manufacturers of SA (Naamsa) on Tuesday (7 January) attributed the disappointing domestic sales last year to a slowdown in the economy coupled with above-inflation average new vehicle price increases.

Domestic sales volumes grew by only 3.2% in 2013‚ well below Naamsa's original expectations of about 7.3%. This compares with annual growth in total sales of 24.7% in 2010‚ 16.1% in 2011 and 9.0% in 2012.

The new passenger car and light commercial vehicle sectors reflected a year-on-year volume decline of 0.9% in December‚ while sales of medium‚ heavy and extra-heavy commercial vehicles performed better.

Export sales rose 9.3% year-on-year in December‚ to 21‚613 units.

For the whole year‚ however‚ exports were 275‚822 units - well down from the industry's original vehicle export projections of 336‚000 units - mainly as a result of a seven-week strike in the automotive industry last year.

The association anticipates that a key factor affecting demand for new vehicles this year will be price increases‚ which are expected to be higher than inflation because of the weaker rand and a modest improvement in the South African economy.

"Assuming further improvement in the global economy and projected higher exports to African countries‚ Asia and North America‚ export sales during 2014 could improve by some 55‚000 vehicles or about 20% compared with 2013‚" Naamsa said.