MOTORING NEWS - Earlier this month the South African motoring industry representative, Naamsa, released the sales statistics of August 2020 compared to August last year, and although new vehicle demand had improved slightly compared to the performance of the previous two months, it still painted a bleak picture. Naamsa expects activity in the new vehicle market to remain low for the remainder of the year.
Aggregate domestic sales in August this year, at 33 515 units, reflected a decline of 11 969 units or 26,3% from the 45 484 vehicles sold in August last year. On the upside, though, the performance of the medium and heavy commercial vehicle segments surprised. Export sales at 23 337 units also registered a huge fall of 20 623 units - or a decline of 46,9% - compared to the 43 960 vehicles exported a year ago.
Overall, out of the total reported industry sales of 33 515 vehicles, an estimated 30 875 units or 92,1% represented dealer sales, 4,2% sales to government, 2,9% to industry corporate fleets, and an estimated 0,8% represented sales to the vehicle rental industry.
The new passenger car market at 19 545 units had registered a decline of 9 458 cars - a fall of 32,6% compared to the 29 003 new cars sold in August last year.
The contribution by the car rental industry remained negligible and comprised only eight units or 0,04% compared to the 18,0% in August 2019.
In the new light commercial vehicle sector, domestic sales of bakkies and minibuses, at 11 336 units, was a decline of 2 719 units or 19,4% from the 14 055 sold in August 2019.
Sales for medium and heavy trucks saw an uptick of 799 units and 1 835 units, respectively. Medium commercial vehicle sales was showed an increase of 57 vehicles or a gain of 7,7%. Heavy trucks and buses showed an increase of 151 vehicles, a gain of 9,0% compared to the corresponding month last year.
Vehicle exports showed a huge decline of 20 623 vehicles or 46,9% compared to the 43 960 vehicles exported in August 2019, which was the highest monthly total on record. The performance for the year to date reflected a fall of 104 627 units or 40%.
• The automotive industry contributes 6,4% to GDP (4% manufacturing and 2,4% retail);
• Total automotive revenue in South Africa amounted to R500-billion in 2019;
• In 2019, the export of vehicles and automotive components reached a record amount of R201,7-billion, equating to 15,5% of South Africa's total exports;
• The industry accounts for 27,6% of the country's manufacturing output;
• Vehicles and components are exported to 151 international markets;
• It is the 5th largest exporting sector out of 104 sectors;
• The manufacturing segment of the industry presently employs more than
110 000 people across its various tiers of activity (from component manufacturing to vehicle assembly);
• Combined with the industry's strong multiplier effect, it is responsible for approximately 457 000 jobs across the South African economy's formal sector.