While the outlook for vehicle sales in 2015 had improved as a result of a number of recent positive developments “one major negative factor revolved around the security and stability of electricity supply,” The National Association of Automotive Manufacturers (Naamsa) states.
In its comments on the January sales figures, the Association says that new vehicle sales had started 2015 “on a relaxed note.
“However, short to medium term prospects had turned increasingly positive. “.
Further, it stated, exports sales had started the year “on a strong note”.
With regard to exports, Naamsa says that as expected in January export sales at 16 708 “reflected a substantial improvement” of 2 863 or 20.7% compared to the same month last year.
It said that “on the back of normalised industry production “exports for 2015 would improve by around 15% to a record of about 320 000 vehicles.
Naamsa reports that January 2015 aggregate new vehicle sales at 52 306 units registered a decline of 642 vehicles or 1.2% compared with the same month last year.
Sales of light commercials, heavy and extra heavy tricks recorded “noteworthy gains” in January, it says.
With regard to positive factors weighing on the figures, the Association points to the fact that consumer spending is likely to benefit from the substantial decline in fuel prices over the past six months.
Naamsa also notes that the SA Reserve Bank’s Leading Indicator had increased to its highest level in nine months, adding that given the correlation between this and new car sales “this development augurs well for vehicle sales in the short to medium term”.
It also points to expectations of a higher growth economic rate of around 2.3% for the year.
Article published from Metro Minutes by Patrick Cull”.