Investors: News

Vehicle Sales For May Continue To Experience Support Ahead Of Expectations

Mon, Jun 3 2013

·       Total sales of 53 997 units slightly above expectations for May

·       Underlying strength derived from private sector with dealer sales accounting for 91% of total

·       Light commercial vehicle growth exceeds passenger growth again

·       GMSA records sales of 5 956 units for 10,9% share of market

·       Chevrolet Utility dominates sub-1 ton sector with 1 853 sales

·       New Isuzu KB makes its presence felt in 1-ton sector

“During May the motor industry saw sales once again surprising with deliveries of new vehicles ahead of market forecasts, but at a more restrained rate that in the first four months of the year,” says Malcolm Gauld, GMSA’s Vice President Vehicle Sales, Service, and Marketing. “Most of the strength in the market is derived from activity in the private sector with sales through the dealer channel accounting for 91% of the total. Activity in the important Government and Rental sectors was somewhat subdued.

“Overall the market was up 7,5% on May last year with passenger vehicles gaining 6,3% for the month versus 2012. The light commercial vehicle once again delivered an encouraging performance with an 11,1% gain in sales versus May 2012. The light commercial market was supported by increased stock availability of the new Isuzu KB and improved sales of the Chevrolet Utility from GMSA. Sales of medium commercial vehicles was virtually static while heavy and extra heavy vehicles gained 20,8 and 12% respectively over the same month last year. Year-to-date growth for the total market of 7,5%, is likely to reduce over the coming months but will still remain in positive territory at year end.

“South African consumers continue to enjoy a low cost of finance combined with a high level of promotional activity at dealer level making this an attractive time to buy a new car. Continued pressure on the rand is, however, a consideration that cannot be ignored and at some point the motor industry’s hand will be forced to factor this in through pricing adjustments.”

GMSA achieved a market share of 10,9% with a total of 5 956 sales for the month. In the passenger sector the locally manufactured Spark accounted for 464 sales while the medium sized Cruze saw 546 deliveries. The Trailblazer continued to grow its presence in the market with a best-to-date performance of 423 sales for the month. In the light commercial vehicle sector the Chevrolet Utility dominated the sub-1 ton segment with 1 853 sales and the new Isuzu KB achieved 1 364 sales as stock levels across the full model range improved at dealer level.