Interest rates, slump, cited for sales decline
The National Association of Automobile Manufacturers of South Africa said earlier this week new vehicle sales started the year on a weak note, in line with general industry expectations. All major sectors recorded declines compared to January 2013.
For South Africa, January 2014 aggregate new vehicle sales at 53,025 units registered a decline of 3874 vehicles or a fall of 6.8% compared to the 56,899 vehicles sold in January last year. Most major segments recorded year on year declines – new cars 7.0%, light commercials 6.6%, medium commercials zero, heavy trucks 19.5% and extra heavy trucks 6.1%. Moreover, the January 2014 export sales at 13,960 units is a decline of 19.7% compared to the 17,393 vehicles exported in January last year.
The South African new car market had been under pressure in January 2014 and at 38,008 units reflected a decline of 2857 units or a fall of 7.0% compared to the 40,865 new cars sold in January last year. The car rental Industry had once again made a strong contribution and had accounted for 18.1% of new car sales in January, 2014.
Vehicle sales in Namibia in December declined to 1190 units from 1583 units in November 2013, said Namibia Equity Brokers in their survey of annual vehicle sales for 2013.
The year’s aggregate decline was 25%
“Therefore in 2013 a total of 15,083 vehicles units were sold and if the buses and the XHV units are excluded, that number reduces to 14,581 units. Out of the latter number, 2140 units fall within the broad definition of luxury vehicle, which is 15%. This attest to the anomaly of abundance amid abject poverty. This sales figures do not include the Chines produced vehicles.
For the region, NAAMSA said 2014 new vehicle sales are likely to experience head winds as a result of above inflation price increases, the slowdown in the economy and, possibly rising interest rates.