Vehicle market still weak

According to the figures just released by the National Association of Automobile Manufacturers of SA (Naamsa), the June aggregate new vehicle sales at 50 251 units were down 4.8% from the 52 785 vehicles sold in June last year.

The new car market at 33 035 units reflected a fairly substantial decline of 2 332 units or a fall of 6.6% compared to the 35 367 new cars sold in June last year.

“The relatively weak new car market was despite second quarter incentive packages on offer by most automotive companies,” said Naamsa. “Intense competition in an increasingly difficult trading environment continued to put pressure on margins throughout the automotive value chain.”

Domestic sales of new light commercial vehicles, bakkies and mini buses were 14 756 units – reflecting a modest improvement of 223 units (or 1.5%) compared to the 14 533 LCVs sold the previous June.

But sales of vehicles in the investment-driven medium and heavy truck segments of the industry also registered substantial declines.

Medium commercial vehicle sales were 804 units, a fall of 103 units (11.4%); and the heavy commercial vehicle sales (including buses) were 1 656 units, a decline of 322 vehicles or a fall of 16.3%.