Johannesburg - South Africa's new vehicle sales fell 1.4 percent year-on-year to 55,722 units in August, data from the trade and industry department showed on Monday.
Last month, aggregate new vehicle sales were 55,751, which was 738 fewer than August last year.
However, export sales jumped 18.5 percent higher to 25,027 units in the month.
“As anticipated, new vehicle sales had shown a marginal decline year on year, while export sales had staged a strong recovery,” Naamsa said in a statement.
“In the event, domestic new vehicle sales had continued to show resilience, for the third month in a row, despite subdued economic growth and pressure on consumers’ disposable income.”
Export sales showed a 18.5 percent improvement with 25,027 vehicles exported compared to 21,116 in August last year.
Out of the total reported industry sales of 55,751 vehicles, 79.8 percent were dealer sales, 13.1 percent sales to the vehicle rental industry, 3.6 percent to industry corporate fleets, and 3.5 percent to government.
Naamsa said domestic sales of new light commercial vehicles, bakkies and minibuses improved by 2.1 percent compared to August last year.
Medium commercial vehicle sales showed a slight decline of 36 units or 3.5 percent while sales of heavy trucks and buses marginally improved by 0.1 percent.
Overall the continued strength in commercial vehicle sales was encouraging and suggested improved investment sentiment, the association said.
“The outlook for the SA automotive sector for the balance of 2014 would remain challenging. Relatively low economic growth, recent increases in interest rates and above inflation new vehicle price increases, would combine to dampen new vehicle sales momentum,” Naamsa said.
The domestic automotive market was expected to register a drop in volume of between four and five percent compared to 2013.
“South Africa requires stronger growth, faster employment creation and a narrowing of the country’s current account and fiscal deficits,” Naamsa said. - Sapa and Reuters