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Demand for new motor vehicles slows at year-end
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"Industry sales came in at around 5,000 units below expectation in November, an indication that the industry may be slowing down as we approach year end. We are, however, optimistic that the industry can reach the projected 5% growth for the year with a strong sales month in December," says Brian Olson, GMSA's Vice President Vehicle Sales, Service, and Marketing.
"The passenger sector enjoyed a high level of support from the rental fleet sector during September and October. This support continued during November with just over 12% of new cars sold delivered into rental fleets. Following the trend of recent months support for light commercial vehicles continued stronger than the passenger sector but a drop in sales of 4,3% compared to 2012 was evidenced. Dealer sales, largely to private buyers, accounted for 83% of all vehicles sold.
"Looking ahead to year end the outlook for year-on-year growth remains positive with the potential for the market to around 650,000 units. The target of 5% growth in sales for the year could still be achievable with strong December sales. There is still the potential for 2013 to deliver total vehicle sales that will be the third best in the history of the industry.
"There is little doubt however that the average motorist is feeling the crunch of upward pressure on motoring costs. While the interest rate outlook remains positive, continued pressure on the rand and imported inflation remain a reality."
Within the GMSA range the Chevrolet Spark was a strong performer in the passenger sector with sales of 495 units for the month as a leading contender in the burgeoning small car sector. The Spark's commercial vehicle sibling, the Pronto, continued to expand its niche as a unique and purpose built urban delivery solution with sales topping out at 125 units for the month. The Chevrolet Utility continued to dominate the sub-1 ton segment with 1279 sales. In the 1-ton pick-up segment export sales of the new Isuzu KB started to ramp up with the full potential of this important aspect of this new model on the way to being realised. GMSA's sales for the month were 5 042 units which equals to a 9, 9% share of the total vehicle market for the month.
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