NEW-VEHICLE sales in South Africa declined lower than usual in July after being buoyed by good rental-fleet sales.
Last month 57 670 new cars, light commercials and trucks were sold, which was only a 1.5% decline compared to July last year, according to the National Association of Automobile Manufacturers of South Africa (Naamsa). The National Union of Metalworkers of South Africa (Numsa) strike had little effect on local vehicle sales but exports were down 16.1% compared to July last year.
Last month passenger-car sales were down by just 1.2% while light-commercial vehicle (LCVs) decreased by 2%. It was a welcome relief after other months this year where declines were as high as 10.2%, said Rudolf Mahoney, head of research at WesBank.
“However, the growth has been at fleet level, and not through dealer sales. This is indicative that consumers are still under pressure, with higher fuel prices and another hike in the interest rate,” he said.
Rental-fleet sales are up 21%, year-on-year, while dealer sales declined 5.9% over the same period. Overall, vehicle sales are down by 4.7% in the first seven months of the year compared to last year.
Despite less activity in dealerships, July saw an all-time record for WesBank vehicle finance applications, at 129 000. Applications for new-vehicle finance grew by 5% year-on-year; however the market’s shift to used vehicles was seen in yet another month of solid growth for pre-owned vehicles, at 15% year-on-year.
This decline in the new market can be attributed to continued growth in the used-car market, where buyers are finding better value for money. WesBank’s own data comparing sales of used and new vehicles shows a ratio of 1.39 used vehicles to every one new vehicle, a year-to-date increase of 11%.
According to Absa a total of 153 900 used vehicles have been financed in the first half of 2014 compared with 127 391 financed in the same period last year. The number of new vehicles financed in the period January to June 2014 was 96 908 compared with 79 920 financed in the corresponding period last year.
BEST-SELLING NEW VEHICLES IN JULY 2014
1.VW Polo 3330
2.TOYOTA Hilux 3117
3.VW Polo Vivo 2887
4.FORD Ranger 2564
5.TOYOTA Corolla/Auris/Quest 2134
6.TOYOTA Etios 1618
7.NISSAN NP200 1442
8.TOYOTA Quantum 1405
9.ISUZU KB 1379
10.MERCEDES C-Class 1377
11.CHEVROLET Utility 1297
12.FORD Figo 1188
13.FORD EcoSport 1005
14.BMW 3-Series 981
15.CHEVROLET Spark 958
16.TOYOTA Fortuner 885
17.NISSAN NP300 Hardbody 639
18.FORD Fiesta 614
19.RENAULT Sandero 572
20.VW Golf 563
21.AUDI A3 524
22.TOYOTA Avanza 496
23.NISSAN Qashqai 483
24.TOYOTA RAV 463
25.RENAULT Clio 437
26.FORD Kuga 419
27.HONDA Brio 408
28.CHEVROLET Aveo 387
29.CHEVRLET CRUZE 356
30.AUDI A4 352
Used-car sales rise as new-car sales dip
Pressure on consumers growing
The recently-upgraded VW Polo was South Africa's best-selling new vehicle in July.