Bakkie sales down, trucks up

By Colin Windell

January was a tough month for newvehicle sales and only heavy trucks and buses as a segment showed a marginal increase – 48 vehicles or 4,5% compared to the same month last year – according to the latest figures released by the National Association of Automobile Manufacturers of South Africa (NAAMSA).

Domestic sales of new light commercial vehicles, bakkies and mini buses at 11 689 units during January, 2018 reflected a fall of 251 vehicles or a decline of 2,1% compared to the 11 940 light commercial vehicles sold during the corresponding month last year. 

Sales in the low volume medium and heavy truck segments of the Industry reflected a mixed performance  and at 443 units and 1 114 units, respectively, had recorded a fall of 29 vehicles or a decline of 6,1% in the case of medium commercial vehicles and, in the case of heavy trucks and buses, an improvement of 48 vehicles or a gain of 4,5% compared to the corresponding month last year.  The figures continued to reflect subdued investment sentiment in the economy. 

In the LCV segment (under 3 501 kg) Toyota topped the log with 4 166 units sold, ahead of Nissan (including Datsun) with 2 438 and followed by Ford on 2 372 and Isuzu on 1 200. In the Medium CV (3 501 kg – 8 500 kg) Isuzu topped the table, its N Series sales of138 units well ahead of Toyota’s Hino 300 on 48 and the Iveco Daily on 37.

For heavy trucks from 8 501 kg -16 500 kg  the Isuzu F Series claimed the lead with 71 units compared to the 62 for the Hino 500 with FAWin third place on 55 units.

Top honours for the extra heavy brigade went to Volvo on 190 ahead of Scania on 108 and MAN on 106.

Commenting on the new vehicle sales statistics for the month of January the Association said domestic new vehicle sales had started the year on a weak note with aggregate domestic sales at 45 888 units declining by 4 498 units or 8,9% from the 50 386 vehicles sold in January last year.  In contrast, January, 2018 export sales at 14 212 vehicles had registered a substantial improvement of 2 561 units or a gain of 22,0% compared to the 11 651 vehicles exported in January last year.

“The considerable appreciation in the value of the Rand will reduce inflationary pressures and serve to enhance consumers’ disposable income. Combined with the recent positive political developments and improved business confidence, it is possible for economic growth in 2018 to surpass current expectations,” it says. 

“However, much will depend on the February 2018 budget and governments’ commitment to disciplined fiscal management and limiting government expenditure as well as ensuring State Owned Enterprises are subjected to strict governance and operate according to sound business principles.

“On the assumption that South Africa will avoid a further downgrade during the first quarter of 2018, NAAMSA anticipates economic growth could recover to a level above 1,5% in 2018.  This would benefit new vehicle sales in particular which could then expand to levels above the 2% to 4% growth projected at the beginning of this year. 

New vehicle price inflation, assisted by the stronger Rand, was currently at an annualised rate of around 2,5%, well below the inflation rate, and this, together with continued replacement demand, would serve to support new vehicle sales in the months ahead.”