MOTOR SALES PLUMMET 50 PERCENT

MCCARTHY MOTORS SAYS: April was a most disappointing month for the South African motor industry due primarily to the limited number of selling days, the focus on the national election and some pre-price increase buying in March.

As a result, the total sales of 26 283 units reported to the National Association of Automobile Manufacturers of South Africa (Naamsa) and Associated Motor Holdings (AMH), were 43.1% down on April 2008’s figures. This was the lowest monthly sales total since December 2003, when 23 040 vehicles were sold.

Looking at the individual market segments, the commercial vehicle segment was particularly hard hit, with a sales decline of almost 50% on April 2008. Light Commercial Vehicles recorded a 49.5% drop in sales, totalling 8 024 units in April. A decrease of 45.9% brought the Medium Commercial Vehicle segment to a total of 691 units. A total of only 820 Heavy Commercial Vehicles was retailed during April, a significant drop of 60.9%.

“I believe we have now reached the lowest point in terms of monthly sales, and I am confident that we’ll see a gradual improvement going forward,” stated Brand Pretorius, chairman of McCarthy Motor Holdings.

“Both business and consumer confidence are benefiting from the significant reduction in the prime lending rate and confirmation that inflation is declining. In addition, major sports events like the IPL Cricket, Confederations Cup Soccer, the Lions tour and the FIFA World Cup Soccer, are having a favourable impact on overall sentiment in the country.”

Pretorius also said the fact that the general election went off smoothly, had a positive affect on confidence levels.

Also, whereas a significant deterioration in new vehicle affordability was anticipated earlier this year, the recent strength of the Rand should now inhibit price increases to a degree, which is good news for private and corporate buyers alike.

“Taking all of these factors into consideration, we foresee an improved second half of the year,” said Pretorius. On a year-to-date basis, the total market reflects a drop of 36.4% to 201 473 units, but it is anticipated that sales for the full year should not be down more than 30% on sales recorded in 2008.