Automotive industry slowly getting back into gear
New-vehicle sales surged 20.5% in February, industry data showed yesterday, pointing to a recovery in a key sector of the economy.
February was the second consecutive month of year-on-year increases after almost three years of declining sales when the industry was one of the hardest hit by the global downturn and weak consumer demand.
The National Association of Automobile Manufacturers of SA said: “Despite the low base last year, it was encouraging that total industry sales for the first two months of 2010 were 18% ahead of the corresponding two months in 2009.
“Statistically, this represented one of the best starts to a calendar year.”
Naamsa said total industry sales climbed to 39312 units last month (the highest sales since late 2008) compared with 32613 a year ago.
Excluding sales from Associated Motor Holdings and Amalgamated Automobile Distributors, which report separately, sales rose 16.2% compared with February last year.
Total passenger car sales climbed 27.5% year on year.
However, Naamsa said exports were down 5.1% at 14123 vehicles in February compared with the same month in 2009.
South Africa’s manufacturing sector led Africa’s biggest economy out of recession last year and pushed growth to a faster than expected 3.2% in the fourth quarter of 2009.
The auto industry is the biggest in the manufacturing sector, and is a key employer and exporter.
Manufacturing shed more than 200000 of the almost 900000 jobs lost last year.
“The outlook for domestic sales for 2010 is improving and could gain momentum as economic activity improves further in the medium term,” Naamsa said.
It added that demand from the car rental industry was expected to rise sharply in the lead-up to the soccer World Cup in June and July.
The automotive market was at an early stage of what could be a sustainable recovery, it said.
sourced via timeslive.co.za
