New vehicle sales increase

By Drum Digital
01 August 2013

New vehicle sales increased by 7.5 percent year-on-year last month, the National Association of Automobile Manufacturers of SA said on Thursday.

The rental market contributed strongly to the increase, with the industry buying 11 percent of new vehicles sold last month.

Dealer sales accounted for roughly 82 percent of sales, and government acquisitions for two percent.

"A strong contribution by the car rental industry had contributed to the July sales totals and this trend was expected to continue over the next two months," it said in a statement.

During July, passenger car sales grew by 6.4 percent compared to the same month last year, and light commercial vehicles by 9.2 percent.

WesBank, which calls itself the country's leading asset-based lender, commented that consumer demand remained very positive. It expected the car market to see an increase in activity towards the end of the year.

Cyril Zhungu, the general manager of WesBank's motor division, said it recorded 116,500 applications for car finance in July. The average transaction value on cars increased, in part due to aggressive marketing by manufacturers offering attractive special deals.

"WesBank foresees the market remaining positive for the remainder of this year, with a slight increase in activity in the used car market," Zhungu said.

"We believe that the biggest factor in the foreseeable future will be the effect of a depreciating rand and the ability of the manufacturers to maintain marketing activity in order to support vehicle sales."

-Sapa

Find Love!

Men
Women