In line with industry expectations, new-vehicle sales for the month
of May recorded double-digit gains within all sectors, compared to
the corresponding month last year.
This was announced by the National Association of Automobile Manufacturers of South Africa (Naamsa) in its report on the May 2004 new-vehicle sales statistics.
Aggregate new-vehicle sales at 34 345 units had registered an improvement of 7 292 vehicles or 26,9% compared to the 27 053 new vehicles sold during the corresponding month last year.
Positive economic fundamentals with gross domestic product (GDP) growth and retail sales upbeat, intense competition, attractive incentives and new product offerings continued to provide support to the new-car market. May, 2004 new-car sales at 22 301 units had registered an improvement of 4 921 vehicles or 28,3% compared to the 17 380 new cars sold during May, 2003.
May, 2004 new car sales had also recorded an improvement of 3 567 vehicles or 19,0% compared to the 18 734 new cars sold during the previous month of April, 2004 – during which demand had been subdued as a result of the Easter holidays, the general election and the ten years of democracy celebrations.
Naamsa said the investigation by the Competition Commission into manufacturers’ pricing policies was said to have created a degree of uncertainty among consumers and had resulted, in a number of instances, in consumer decisions to defer buying pending the outcome of the probe.
Based on reports by manufacturers, consumer perceptions and decisions to hold back on buying had affected the new-car market during May.
Naamsa has urged the Competition Commission to expedite and bring the investigation into pricing-related matters to an early conclusion, specifically to remove uncertainty in the marketplace.
Sales of new light commercial vehicles, bakkies and minibuses had again maintained strong market growth momentum during May, 2004, and, at 10 421 units, had registered an improvement of 2 073 vehicles or 24,8% compared to the 8 348 unit sales of the corresponding month last year.
New light commercial vehicle sales had also registered a gain of 1 908 units or 22,4% compared to the 8 513 light commercial vehicles sold during the previous month of April, 2004.
On the back of positive fixed investment trends and improving economic fundamentals, sales of vehicles in the medium and heavy truck segments of the industry during May, 2004, had maintained strong upward momentum and at 611 units and 1 012 units, respectively, had registered an improvement of 62 units or 11,3%, in the case of medium commercials, and 214 units or 26,8%, in the case of heavy commercial vehicles and buses – compared to the corresponding month last year.
Vehicle export sales were expected to show some improvement over the next few months.
The industry’s performance during the first five months of 2004 had established a solid base for strong full year totals. However, during the balance of 2004, monthly comparisons would henceforth be relative to the higher corresponding monthly sales totals recorded from June 2003 onwards.
Nevertheless, the higher economic growth rate, strong consumer and business sentiment and enhanced overall new-vehicle affordability supported expectations of above-average growth in new-vehicle sales for 2004.
Overall, the industry remained on track for one of its best years since the mid-1980s.
Commenting on the statistics, Nedbank said the company had an unchanged view of the market conditions.
A statement released by Nedbank said that strong spending and robust credit demand will ultimately exert upward pressure on inflation.
“The strong rand has so far masked these dangers and helped keep prices benign. However, cost-push factors such as fuel prices and wages are also growing and with them the potential to push consumer price index (CPIX) inflation above the psychological 6% level in the final quarter of the year.
We therefore still believe that the Reserve Bank will become cautious and increase prime by two sets of 50-basis points during the second half of the year, with the first one in October and the second in December followed by a 100 basis point increase in February 2005,” the statement said.
This was announced by the National Association of Automobile Manufacturers of South Africa (Naamsa) in its report on the May 2004 new-vehicle sales statistics.
Aggregate new-vehicle sales at 34 345 units had registered an improvement of 7 292 vehicles or 26,9% compared to the 27 053 new vehicles sold during the corresponding month last year.
Positive economic fundamentals with gross domestic product (GDP) growth and retail sales upbeat, intense competition, attractive incentives and new product offerings continued to provide support to the new-car market. May, 2004 new-car sales at 22 301 units had registered an improvement of 4 921 vehicles or 28,3% compared to the 17 380 new cars sold during May, 2003.
May, 2004 new car sales had also recorded an improvement of 3 567 vehicles or 19,0% compared to the 18 734 new cars sold during the previous month of April, 2004 – during which demand had been subdued as a result of the Easter holidays, the general election and the ten years of democracy celebrations.
Naamsa said the investigation by the Competition Commission into manufacturers’ pricing policies was said to have created a degree of uncertainty among consumers and had resulted, in a number of instances, in consumer decisions to defer buying pending the outcome of the probe.
Based on reports by manufacturers, consumer perceptions and decisions to hold back on buying had affected the new-car market during May.
Naamsa has urged the Competition Commission to expedite and bring the investigation into pricing-related matters to an early conclusion, specifically to remove uncertainty in the marketplace.
Sales of new light commercial vehicles, bakkies and minibuses had again maintained strong market growth momentum during May, 2004, and, at 10 421 units, had registered an improvement of 2 073 vehicles or 24,8% compared to the 8 348 unit sales of the corresponding month last year.
New light commercial vehicle sales had also registered a gain of 1 908 units or 22,4% compared to the 8 513 light commercial vehicles sold during the previous month of April, 2004.
On the back of positive fixed investment trends and improving economic fundamentals, sales of vehicles in the medium and heavy truck segments of the industry during May, 2004, had maintained strong upward momentum and at 611 units and 1 012 units, respectively, had registered an improvement of 62 units or 11,3%, in the case of medium commercials, and 214 units or 26,8%, in the case of heavy commercial vehicles and buses – compared to the corresponding month last year.
Vehicle export sales were expected to show some improvement over the next few months.
The industry’s performance during the first five months of 2004 had established a solid base for strong full year totals. However, during the balance of 2004, monthly comparisons would henceforth be relative to the higher corresponding monthly sales totals recorded from June 2003 onwards.
Nevertheless, the higher economic growth rate, strong consumer and business sentiment and enhanced overall new-vehicle affordability supported expectations of above-average growth in new-vehicle sales for 2004.
Overall, the industry remained on track for one of its best years since the mid-1980s.
Commenting on the statistics, Nedbank said the company had an unchanged view of the market conditions.
A statement released by Nedbank said that strong spending and robust credit demand will ultimately exert upward pressure on inflation.
“The strong rand has so far masked these dangers and helped keep prices benign. However, cost-push factors such as fuel prices and wages are also growing and with them the potential to push consumer price index (CPIX) inflation above the psychological 6% level in the final quarter of the year.
We therefore still believe that the Reserve Bank will become cautious and increase prime by two sets of 50-basis points during the second half of the year, with the first one in October and the second in December followed by a 100 basis point increase in February 2005,” the statement said.
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