Recovery in auto industry
2010-05-13
THE South African automotive market is set for a much better year in 2010, if the local market can sustain the momentum it has shown in the first four months of the year. Recently the National Association of Automotive Manufacturers of South Africa (Naamsa) announced that a total of 35 763 vehicles found new owners in the month of April. This is 36% better than the same month last year and it brings the aggregate sales for the first four months of the year to a total of 156 659 units, which is 22,2% better than the same period in 2009. “Any comparison between this year and 2009 will be exaggerated, given the tough economic climate that prevailed last year. The magnitude of the monthly increases does however show that the market has some latent demand, which is supported by a wide range of vehicles on offer and the high prevalence of sales assistance by dealers,” says Andrew Kirby, Senior Vice President of Sales and Marketing for Toyota South Africa Motors. Toyota, who recently celebrated 30 years as market leader, maintained its position at the top of the market with 7 104 new vehicles sold. The company has also exported 3 556 units, which would imply that one out of every five vehicles exported proudly carries the Toyota name. The passenger market, which represents two thirds of the total market, recorded sales of 23 606 units. Passenger vehicle sales did decline by 17,1% when compared to the impressive 28 464 units sold in March, but, says Kirby, April traditionally shows a decline because of the number of holidays in the month. Models such as the Corolla (942 units), Fortuner (789 units) and ever-popular Hilux (2 620 units) performed well in the short selling-month and a strong order book promises even better sales for the rest of the current quarter. Toyota was outpaced by Volkswagen in the light passenger car sector, however, with Polo reigning supreme. “One should guard against overestimating the vehicle market as several anomalies, such as the 2010 Soccer World Cup, delayed purchases carried over from 2009 and major rental fleet purchases prior to June has an effect on estimations and forecasting models. “Despite this we believe that the market has turned a corner and that it could top the 460 000 unit mark for the full year,” says Kirby.
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