VW SALES ROCKET IN AUGUST

During August 2010 a total of 33 541 new passenger cars were sold in South Africa. Total new passenger car sales in August, including sales not reported in detail to NAAMSA, increased by 14.8% when compared to July 2010, and by 49.6% when compared to August 2009, bringing the year-to-date August market in 2010 to a level 31.4% above the same period for 2009.

“Despite the eight-day motor industry strike last month, Volkswagen of South Africa continued to dominate the passenger car market with 19.4% share and total sales of 6 527 units.  The new uniquely South African Polo Vivo was the number one selling passenger Brand in August with sales of 2 958 units. We are still very encouraged by the reaction from the market to our new entry level Polo Vivo,” said Mike Glendinning, Director of Sales and Marketing, Volkswagen of South Africa.  There were also 1 236 new Polo sales during August.  
“Audi sold 1 260 units establishing an all time Audi sales record and achieving 23% of the premium segment in August,” said Glendinning.
Significantly, the Group’s passenger car sales year to date, are 37.6% ahead of the same period in 2009 – stronger than the market’s 31.4%.
“New passenger car sales performed strongly in August recording the largest monthly market since January 2008 with the selling rate of new cars per day reaching levels last experienced in October 2007.  While August is traditionally a relatively good month for new passenger car sales the exceptional buoyancy of the market in August 2010 can in all probability be ascribed to a combination of seasonally strong demand from rental car companies and a buy ahead of the introduction of the CO2 vehicle emissions tax on 1 September 2010. It is estimated that the introduction of the CO2vehicle emissions tax will result in an increase of new vehicle pricing of around 2.5% on average,” said Glendinning.
“Looking ahead, demand for new passenger cars, while undoubtedly having been supported by interest rate reductions to date, has also benefitted from growing pressure for replacement demand and slowing rates of increase in new vehicle prices which in real terms have fallen into negative territory. The new car price impact of the CO2 emissions tax (on average 2.5%), and the current strike in the components industry will undoubtedly offset some of the benefit the market has enjoyed from declining real new vehicle prices. Coupled to an environment of slower rates of economic growth this will in all probability result in slower rates of growth in the new cars sales cycle in coming months,” concluded Glendinning.  

STORY BY VW