June vehicle sales show strong performance

Vehicle sales in June showed a strong performance, according to the National Association of Automobile Manufacturers of South Africa (Naamsa).

“The June new vehicle sales reflected another relatively solid performance with sales in all the major segments registering double digit growth compared to the corresponding month last year,” said the association on Tuesday.

June 2012 aggregate industry domestic sales had improved by 7 015 units or 15.6% to 51 891 vehicles from 44 876 units in June 2011.

Total domestic sales for the first half of 2012 remained 10.5% ahead of the six months in 2011. June 2012 export sales at 27 061 vehicles had registered modest growth rising by 1 767 units or 7%.

Exports of South African produced motor vehicles, including Mercedes Benz SA export sales data, during June, 2012 at 27 061 vehicles had registered an improvement of 1 767 units or 7% compared to the 25 294 vehicles exported in June last year.

Article continues below...

Naamsa said the momentum of industry export sales should improve over the balance of the year as various vehicle export programmes were ramped up.

“Overall, the industry’s export performance would remain a function of the direction of the global economy. Vehicle exports into Europe were likely to continue under pressure as a result of the recession in the Eurozone but these could be offset by higher exports to African countries and Australia,” it noted.

Though there were indications of further slowing in the domestic economy, new vehicle sales continued to perform remarkably well with several factors expected to support the domestic market.

These included historically low interest rates, continuing improvement in vehicle affordability in real terms, improving demand for credit by households and businesses as well as further pre-emptive buying by consumers in response to the weaker exchange rate in recent months.- SAnews.gov.za