Pretoria - Vehicle sales grew by 18.9% year-on-year in October, the National Association of Automobile Manufacturers of South Africa (NAAMSA) said.
According to NAAMSA, vehicles sales improved from 44 029 vehicles sold during October last year to reach 52 338 vehicles in October 2011.
"Despite the relatively high base a year ago, the year-on-year growth in new vehicle sales had again improved substantially registering encouraging gains in all major segments," said the association on Wednesday.
Out of the total October 2011 industry reported sales of 52 338 vehicles, 77.6% or 40 629 units represented dealer sales, 14.2% represented sales to the car rental industry, 5.2% sales to government and 3% represented industry corporate fleet sales.
Total new car sales during October 2011 at 36 826 units reflected an improvement of 6 076 new cars or an increase of 19.8% compared to the 30 750 new cars sold in October 2010. Continued above average demand by car rental companies was a major contributor to the new car market.
"Continued strength of the new car market in October 2011 was due to a number of factors, including, improvement in the financial position of consumers on the back of relatively low interest rates, improvement of vehicle affordability in real terms and the positive influence of aggressive marketing and sales incentive programmes during the month."
Sales of industry new light commercial vehicles, bakkies and minibuses had recorded a creditable performance and at 12 994 units for October, 2011 reflected growth of 1 754 units or a gain of 15.6% compared to the 11 240 units sold in October 2010.
"For the first ten months of 2011, new light commercial vehicle sales were ahead by 11.4% compared to the corresponding period last year," said the association.
There was also an increase in sales of vehicles in the medium and heavy truck segments of the industry at 829 units and 1 689 units, respectively, which recorded an increase of 199 units or 31.6%, in the case of medium commercial vehicles, and a gain of 280 units or 19.9%, in the case of heavy trucks and buses, compared to the corresponding month last year.
Exports of South African produced motor vehicles during October 2011, at 25 860, units reflected a decline of 712 vehicles or 2.7% compared to the relatively high base of 26 572 units exported during October last year. At this stage, new vehicle exports should reach about 280 000 units for calendar 2011.
"Industry sales figures over the past few months had exceeded expectations. The new car market for 2011 was now expected to show an improvement of between 16% and 18%, in volume terms, on the 2010 figures - supported by, amongst other things, numerous new model introductions," said NAAMSA.
Domestic sales should continue to register growth over the medium term but probably at a more subdued rate in line with the country's overall economy. "The direction of the global economy remained uncertain and international financial markets were characterised by extreme volatility and turbulence," noted NAAMSA.
Nedbank economists said: "Today's vehicle sales numbers provide further evidence of the current cautious and selective trend in household demand, which will continue to contain retailers pricing power and pose no threat to the medium-term inflation outlook. With growth vulnerable, the MPC [Monetary Policy Committee] will probably opt to keep rates on hold until there is clear evidence of improved growth momentum."
