Domestic vehicle sales to hover around 3% in 2015
Southern African vehicle sales are expected to hover around the 3% mark according to the National Association of Automobile Manufacturers of South Africa (NAAMSA) which released a quarterly review and an outlook for the calender year 2015.
“Based on expectations of an improvement in South Africa’s economics growth rate of between 2% and 3%, stable interest rates and unchanged credit ratings, moderate consumer price inflation and relative stability in industrial relations, the outlook for 2015 is one of marginal volume growth in domestic sales of around 3%,” said the association.
According to the automobile association, total domestic production, largely due to increased vehicle exports is anticipated to rise by around 10% in volume terms to about 625 000 vehicles in 2015.
Reflecting on the 2014 fourth quarter business environment, NAAMSA said, “2014 fourth quarter aggregate industry new car sales at 124,470 units recorded an increase of 1 083 units or a gain of 0.9% compared to the 123,387 new cars sold during the corresponding quarter of 2013. Aggregate industry commercial vehicle sales during the fourth quarter of 2014 at 53,966 units recorded an increase of 5 243 units or a gain of 10,8% compared to the 48,723 units sold during the fourth quarter of 2013.”
“On a year-on-year comparative basis, the consumer driven new car market continued to experience pressure. The investment led vehicle sectors, particularly light and heavy commercial vehicles, reflected positive improvements. Following four successive years of growth in new vehicle sales (2010 – 2013), 2014 new vehicle sales in South Africa recorded a slight year on year decline. The slowdown in the economy, two interest rate increases and above new vehicle average price inflation contributed to a fall in domestic sales volumes of 0.7% for the year,” said the association.