STRONG GROWTH CONTINUES IN OCTOBER NEW VEHICLE MARKET

 
A total of 52 338 new vehicles were sold in October as the new vehicle market recorded a growth of 18.9% over the same month of 2010. This significant increase over October 2010 means that the new vehicle market, as recorded by the National Association of Automobile Manufacturers (Naamsa), is already 16.5% larger than the market in the similar period of the previous year.
 
“The market has recorded a significant jump over October 2010, but is slightly down on the very strong September 2011 month. By our estimates the market will now stabilise at the current growth rates for the remaining two months of the year,” says Dr Johan van Zyl, President and CEO of Toyota South Africa Motors and a Managing Officer of Toyota Motor Corporation.
 
The passenger vehicle market mirrored the movements in the overall market by showing a 19.8% growth over the same month last year, while being slightly down on September. This market felt the greatest impact of the continued strong purchasing by vehicle rental companies in preparation for the December holiday season. Growth in the light commercial vehicle market remains strong and has grown by just over 11% for the year to date.
 
“The past quarter was strongly driven by recovery purchases after the Japan-related stock shortages in the second quarter,” says Dr Van Zyl. “In this quarter we see a stabilisation in growth and a return of the normal vehicle sales drivers, such as seasonal and financial year-end purchasing, such as from the vehicle rental companies. Having said that, we do see a lot of retail activity at dealers of all makes of vehicles.”
 
Dr Van Zyl’s comments are supported by statistics from Toyota Financial Services, who has recorded an increase in finance applications of 19.52% over the corresponding month in 2010, while the total increase for the year to date stands at 32%.
 
Commercial vehicle sales, excluding light commercial vehicles, continued to power ahead and in October it recorded the third strongest month of the year. The star of the show was the extra heavy commercial vehicle market that has recorded an improvement of 29.6% over the corresponding month in 2010 and is already 43.2% stronger in the year to date.
“Demand remains strong in the commercial vehicle segment and is partially driven by a strong replacement cycle from firms who purchased vehicles in the booming 2007/2008 period. We expect this factor to continue influencing the market in 2012,” says Dr Van Zyl.
 
According to Dr Van Zyl the market is aiming for a total market of 570 000 in 2011, which would represent growth of more than 15% for the year.
 
Vehicle exports remained relatively stable, with Toyota reaffirming its position as the country’s foremost vehicle exporter with 9 531 vehicles exported in October. The company shares the view of Naamsa that vehicle exports should reach near half of total domestic sales at roughly 280 000 units in 2011.

2nd November 2011