Vehicle sales move into slow lane – Naamsa

Freight is keeping the local automotive industry moving. This comes at a time when jobs are being shed in the South African automotive industry as the sales momentum of passenger cars starts slowing down, according to the second quarter report by the National Association of Automobile Manufacturers of South Africa (Naamsa). Sales of heavy and extra-heavy commercials showed a “strong upward momentum” in a year-onyear quarterly comparison. In contrast, there is a “substantial decline in growth momentum of the new car, light and medium commercial vehicle segments,” says Naamsa director Nico Vermeulen in his quarterly report. He warns that the short to medium term outlook for industry appears less favourable than at the beginning of 2011. “The direction of the global economy is uncertain at this stage and international financial markets are characterised by extreme volatility and turbulence. This may impact on future export sales. “South Africa, with its relatively open economy, will be affected by any slow-down in world economies and consumer spending in South Africa is also likely to decrease in future,” he says.