Conditions in the new vehicle market challenging – Naamsa

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THE National Association of Automobile Manufacturers (Naamsa) yesterday said conditions in the new vehicle market, with the exception of the light commercial vehicle segment, had remained “extremely challenging”. Picture Gallo Images

The National Association of Automobile Manufacturers (Naamsa) yesterday said conditions in the new vehicle market, with the exception of the light commercial vehicle segment, had remained “extremely challenging”.

There were double-digit year on year declines in most segments. In contrast, export sales of new motor vehicles reflected a noteworthy y/y improvement and remained on target for a new annual record.

The association said November 2016 aggregate of new vehicle sales at 46 413 units had registered a decline of 4 925 vehicles or a fall of 9.6% compared to the 51 338 vehicles sold in November 2015.

Aggregate industry export sales at 31 508 vehicles for November, 2016 reflected an increase of 3 395 vehicles or an improvement of 12.1% compared to the 28 113 vehicles exported in November 2015.

Overall, of the total reported industry sales of 46 413 vehicles, an estimated 38 557 units or 83.1% represented dealer sales, 8.5% represented sales to vehicle rental industry, 4.8% sales to government and 3.6% represented industry corporate fleet sales.

Despite attractive cash incentives, the consumer-driven new car market remained under pressure during November, and at 28 334 units reflected a decline of 4 548 cars or a fall of 13.8% compared to the 32 882 new cars sold in November 2015. “The contribution by the car rental industry accounted for 13.3% of all new cars sold during the month, however, the percentage was lower than the monthly car rental sales since the beginning of the year and could be attributed to the runout of the refleeting cycle,” Naamsa said.

Domestic sales of industry new light commercial vehicles, bakkies and mini buses at 15 632 units during November reflected a noteworthy increase of 148 units or an improvement of 1%.

Sales of vehicles in the medium and heavy truck segments of the industry at 830 units and 1 617 units, respectively, had registered substantial falls and, in the case of medium commercial vehicles, reflected a decline of 191 units or 18.7% and in the case of heavy trucks and buses, a decline of 334 vehicles or a fall of 17.1% compared to the corresponding month last year.

This suggested continued lower levels of capital investment. As anticipated, industry new vehicle exports during November 2016 improved by 3 395 vehicles or a gain of 12.1% compared to the 28 113 vehicles exported in November 2015. The upward momentum was expected to continue.

 

SELLO RABOTHATA | sellor@thenewage.co.za

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