Demand for New Vehicles Begins to Slow in South Africa
The slowdown in overall sales is expected to continue through the rest of the year, Vermuelen says.
August 3, 2011
JOHANNESBURG, South Africa – The National Association of Automobile Manufacturers of South Africa reports a slowdown in demand for new cars.
Ford Focus, new to South African market.
NAAMSA says domestic sales for July totaled 45,703 units, up 10.5% from year-ago’s 41,345. However, that increase lagged behind the 15% year-to-date sales improvement in like-2010.
Association spokesman Nico Vermuelen says July’s year-on-year gain was the industry’s lowest in 18 months. He lists tightened consumer credit and strikes in the steel, engineering and related industries among reasons for the sluggish sales rate.
The slowdown in overall vehicle deliveries is expected to continue through the rest of the year, Vermuelen says.
Ford South Africa also notes market “resistance,” but Gavin Golightly, national sales manager, says the auto maker expects to buck the trend thanks to its newly launched Ford Focus, showcasing the brand at the upcoming Johannesburg auto show.
Buses and medium- and heavy-commercial trucks are faring better than light vehicles, with year-to-date sales running 25% ahead of year-ago. NAAMSA says the surge reflects investment in major infrastructure projects.
Light-commercial vehicles, pickup trucks and minibuses also posted healthy July deliveries of 11,420 units, up 10.2% from prior-year.
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