THE remarkably strong growth in new vehicle sales during the first quarter of 2010 continued during the month of April, with aggregate industry sales at 35763 units.
This registered an improvement of 36percent compared to the 26288 vehicles sold during the corresponding month in 2009, the National Association of Automobile Manufacturers of South Africa reported yesterday.
It said, however, that the improvement should be viewed in relation to the low sales registered this time last year due to the impact of the global financial and economic crisis at the time.
"Nevertheless, the growth momentum in new vehicle sales improved further during April 2010, with the year to date improvement running at 22,2percent compared to the first quarter of 2010 growth rate of 18,7percent.
"Aggregate export sales also registered strong growth," Naamsa said.
Overall, out of the total Naamsa reported industry sales of 30462 vehicles, 85,7percent or 26037 units represented dealer-retail sales, 7percent represented sales to the car rental industry, 4,2percent represented industry corporate fleet sales and 3,1percent sales to government.
Naamsa said the outlook for domestic sales for 2010 remained relatively positive and could gain momentum as economic activity levels improved further. The domestic market should receive support from further improvement in business confidence and consumer sentiment as well as lower inflation and the benefits of interest rate reductions.
Export sales were expected to show further improvement over the balance of the year.
The automotive market in South Africa was at an early stage of what probably represented a sustainable recovery and industry sales projections had recently been revised upwards to reflect growth in aggregate sales for calendar 2010 of around 14percent. - I-Net Bridge