Truck sales weaken

By Colin Windell

A mixture of strike action and a couple of long weekends contributed towards weaker sales in the commercial vehicle sector – this likely to be skewed in coming months with replacements for those vehicles savagely toched in the mindless Mooi River violence recently.

According to figures released by the National Association of Automobile Manufactures of SA (NAAMSA), domestic sales of new light commercial vehicles, bakkies and mini buses were marginally weaker and at 10 580 units during April, registered a fall of 127 vehicles or a decline of 1,2 % compared to the 10 707  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 picture but had again remained under pressure and at 493 units and 1 345 units, respectively, recorded a fall of 68 vehicles or a decline of  12,1%, in the case of medium commercial vehicles, and in the case of heavy trucks and buses, a modest improvement of 17 vehicles or a gain of 1,3% compared to the corresponding month last year. 

NAAMSA said it expected new vehicle sales to show steady improvement over the medium term due to further recovery in domestic demand supported by continued moderation in new vehicle price inflation, rising real disposable consumer income, recent improvement in South Africa’s political and policy environment, lower interest rates and the maintenance of an investment grade rating with a stable outlook by a major credit ratings agency. 

As a result of these developments – reinforced by improved business and consumer confidence as well as increases in the Reserve Bank leading indicator – economic growth for 2018 could recover to around 2% and this in turn would benefit domestic new vehicle sales over the balance of the year and an annual improvement of domestic sales volumes of 3% plus compared to 2017 was expected.

Robust global growth should benefit new vehicle exports going forward.  Exports were expected to show substantial upward momentum in the months ahead.

According to aggregated data from NAAMSA, April’s total vehicle sales of 36 346 units reflect a 3,6% year on year growth, while at the same time showing a dramatic month on month decline of 26,2%.

“It is important to not read too much into these figures as the overall picture is skewed by the dip in sales observed in April 2017 as a result of the country’s downgrade to junk status at the time,” says Rudolf Mahoney, WesBank’s Head of Brand and Communications.

“As a result, the 3,6% increase in sales in April is not as positive a picture as it may seem. Looking at the month to month decline, this is a result of the stronger sales in March, thanks to consumers opting to avoid an increase in VAT and ad valorem which came into effect on  April 1.A more practical indication of the market’s performance this year is the year-to-date decline of 2,6%.”

 

		March	April
LCV	Toyota	5746	3987
	Ford	2999	2456
	Nissan	2908	1797
	Isuzu	1273	1071
	Volkswagen	532	438
	Hyundai	294	224
	Mahindra	293	200
	Mazda	113	106

 

		March	April
MCV	Isuzu	234	146
	Mercedes	184	110
	Toyota	163	109
	Iveco	154	37
	Tata	104	24
	Hyundai	64	19
	Ford	23	16
	JMC	18	10

 

 

		March	April
HCV	Toyota	125	85
	Isuzu	101	66
	FAW	68	53
	Volvo	62	48
	Tata	49	31
	Mercedes	36	29
	Powerstar	10	9
	Iveco	4	7

 

XHCV	Volvo	286	296
	Mercedes	267	164
	Scania	156	163
	MAN	140	142
	FAW	49	45
	Powerstar	41	42
	Iveco	36	31
	Isuzu	34	27

 

		March	April
Bus	MAN	37	25
	Mercedes	30	13
	Scania	22	8
	Tata	3	8
	Iveco	1	2