IJG reports on vehicle sales
IJG securities have compiled a report on vehicle sales for the first quarter of the year. According to the report, new vehicle sales for the month of April increased 1.2% month on month to 1,139 units. They accredited the improvement on account of a 6.2% increase in commercial vehicle sales which was partially offset by a 4.4% contraction in passenger vehicle sales. Year-to-date figures show 4,255 vehicles have been sold which is 11.5% lower compared to a year ago, however there are also signs of a slowdown in the downward trend.
“The 12-month cumulative measure deteriorated further and is now 1.5% lower than a year ago, turning negative the first time in 40 months. In our view the contraction in the 12-month cumulative number is a result of an overhang effect due to significant growth in the base period,” cited the report. Year to date passenger vehicle sales represented 46.7% of total vehicle sales, up from 45.3% in 2012 and 42.9% in 2011.
The report showed that sales of passenger vehicles declined further by 4.4% month on month after losing momentum the previous month. On an annual basis, however, passenger vehicle sales showed a recovery by a 7.0% increase after the previous month’s decline. Commercial vehicle sales increased 6.2% month on month in April 2013 and as a result the rate of decrease on an annual basis moderated to -8.7%, from -16.6% in March and -26.5% in February.
Volkswagen and Toyota dominated the passenger market by selling the most vehicles in April, with Toyota claiming 27.5% of the market and Volkswagen claiming 29.7% (its highest market share year to date). Toyota once again was the market leader in light commercial vehicles, having a market share of 51.9%, followed by Nissan at 16.0% and Isuzu and Volkswagen tied in 3rd place at 8.3% each.
According to motor dealerships a particular slow start to 2013 ascribed it to a slow off take in government tenders while order backlogs also held back sales. The motor dealerships stated, “We expect to see a gradual increase in sales as the year progress on the back of an ongoing improvement in the financial position of consumers due to relatively low interest rates and decreases in income tax rates, while an improvement in supply of new vehicles will also offer support.“