There has been a significant slow- down in the vehicle sales figures for September. Reasons for this are the industry-wide strike that caused a near-standstill at vehicle and automotive parts manufacturers as well as the newly announced carbon emissions tax.
Data released on Monday by the National Association of Automotive Manufacturers SA (Naamsa) reveals the following:
• New vehicle sales during the past month amounted to 41 875 units.
• Worst hit were new vehicle exports, which dipped by 10.3% in September compared to previous year and registered a significant m/m fall of 36%.
• The figure is a 16.6% improvement on new cars sold this time last year, when the sector was at its lowest point.
• On a month-on-month (m/m) basis there is a certain decline in growth.
• During August 2010, new vehicle sales jumped a massive 36.9% year-on-year. September’s sales numbers reflect a 10.5% drop in sales from the previous month.
“There is little doubt that strike action within the motor industry will have inhibited sales of vehicles manufactured locally,” said Malcolm Gauld, General Motors South Africa’s vice-president sales and marketing.
“The effect of the strike has compromised the industry’s already fragile track record as a reliable supplier to international markets,” said Naamsa in a statement on Monday.
Carbon emissions tax on new vehicles
Vehicle sales for August were also inflated by the implementation of the carbon emissions tax on new vehicles.
The CO2 tax kicked into action at the start of September, and prompted consumers to push foward planned purchases of new cars to avoid the effective 2.5% increase in retail price.
Naamsa said that it expects the full effect of the tax to reflect in the sales figures for October and November.
[Information from Fin24.com]