Good news for motor industry

2010-06-05 17:44

Things are starting to look better in the motor industry as news

car sales pick up and second-hand sales decline. And though the sales might

decline during the Soccer World Cup, it won’t have a negative long-term effect

on the steady industry.

The National Association of Automobile Manufacturers of South

Africa (NAAMSA) has reported another good sales month due to the stable interest

rates at 10% and dealers are feeling more positive about the future.

According to WesBank, the local motor industry is set to maintain a

good path to normalisation for the rest of the year.

The latest new vehicle sales figures released by NAAMSA for the

month of May show a continued increase in new vehicle sales, as has been the

trend path so far this year.

A total number of 39 176 cars were sold and shows a 9.5% increase

from April’s figures of 35 763. That means the average selling rate per day for

May was 1 567 cars.

With only a few days to go to the start of the 2010 Fifa World Cup

WesBank anticipates a decline in the sales activity levels during the tournament, however, they do not predict this to have a long-term effect on

the overall growth of the motor industry for the year.

WesBank’s executive head of sales and marketing Chris de Kock says:

”The meaningful driving force behind this continued growth in new vehicle sales

is a result of the lack of supply of quality used car stock, as well as a

reduced difference in price between new and used cars”.

Although the motor industry had a fast start to 2010, WesBank is

still concerned about the ever increasing replacement cycle preventing customers

to re-enter the market.

“In 2006 customers replaced their vehicles after 29 months on

average,” said de Kock.

“Today, however, customers will wait up to 43 months before

replacing their current vehicle,” he added.

 

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