Domestic sales figures in June 1028 have exceeded industry expectations but export sales continue to disappoint, reports Naamsa.
Vehicles sales by the numbers
New vehicle sales at 46 678 units show an improvement of 1346 vehicles (3.0%) from the 45332 vehicles sold in June 2017.
Overall, export vehicle sales at 26 790 vehicles reflect a decline of 4805 units (-15.2%) compared to the 31 595 vehicles exported in June last year.
Industry break down
Overall, out of the total reported Industry sales of 46 678 vehicles, an estimated 38 498 units or 82.5% represent dealer sales, an estimated 11.0% represent sales to the vehicle rental Industry, 3.7% to industry corporate fleets and 2.8% to government.
The new car market in June 2018 at 29886 units registered a marginal improvement of 1261 cars or a gain of 4.4% compared to the 28 625 new cars sold in June 2017. Naamsa said: "On the back of fleeting replenishment the car rental industry contribution had recovered substantially by 15.1% during the month."
Domestic sales of new light commercial vehicles, bakkies and mini buses, at 14261 units, declined during June, 2018 by 58 units or 0.4% compared to the 14 319 light commercial vehicles sold during the corresponding month last year.
Naamsa comments on June sales
Naamsa said: "The improvement in domestic sales, particularly new car sales, was encouraging given recent weak economic growth and investment numbers. It appeared that the new car market had been supported by improved business and consumer confidence.
"However, the decline in the leading indicator of the Reserve Bank over the past two months – suggested a challenging economic environment going forward. Normally new vehicle sales during the second half of a calendar year tended to show improvement on first half sales and this reinforced NAAMSA’s expectations of a modest annual improvement in 2018 domestic sales volumes compared to 2017.
The SA car market future
The organisation said: "Naamsa continued to project growth in export sales over the balance of the year. However, the industry’s export performance was likely to be affected by current protectionist policies in the United States which had increased the risk of a global trade war and this could impact on international trade flows, including vehicle exports."