GM South Africa: Motor Industry Enters Second Half Of Year On A Sound Note







Published by Gerald Ferreira Date: August 2, 2012
Categories: GM, GM Financial, GM South Africa

Motor Industry Enters Second Half Of Year On A Sound Note

  • GMSA captures 11,8% of market in July• New Chevrolet Utility dominates sub-1 ton segment with 1 747 sales for 56% share of segment
  • Chevrolet Cruze ranked 8th in passenger sales for the month and Aveo 9th
  • Total market of 54 067 vehicles is up 18,3% on July 2011
  • Light commercial sales up by 20,8% on July 2011
  • Passenger sales up by 18,2% on same month last year.

GM South-Africa Financials

General Motors South Africa (GMSA) reported sales of 6 402 vehicles for July for a market share of 11,8%. This performance came in on the back of higher demand for new vehicles that saw a total of 54 067 deliveries reported to NAAMSA which was 18,3% up on the sales recorded for July 2011.

“Sales recorded in July pushed the year on year growth in the motor industry to 11,6%, somewhat above the 10% levels suggested by industry forecasters early in the year”, says Malcolm Gauld, GMSA’s Vice President Sales and Marketing.

“It is our view that this higher than anticipated growth is unlikely to be sustained through to the end of the year. It is more likely that the industry will see month-on-month growth in single digits in the coming months in a softer market.

“The past month again saw relatively strong sales through the Government and Rental channels, as the process of fleet renewals continues. However, the Dealer Channel performance mirrored the prior month’s volumes, with widespread industry offers targeting the retail customer.

“The re-distribution of sales in the passenger vehicle segment continues with a focus on the ‘A” and ‘B’ segments where competition is intense. GMSA is well represented in this market with its Chevrolet Spark, Aveo, and Sonic products.

“In the passenger market sector Chevrolet products performed well in July with the Cruze ranked 8th in sales and the Aveo 9th. On the back of this solid performance the Chevrolet brand has experienced volume growth of 9% year-on year.

“Sales of light commercial vehicles were well up on July 2011 with growth of just under 21% experienced. That has raised year on year growth for this sector up to 9,7% - an encouraging indicator for commercial activity. In this sector the new Chevrolet Utility continues its segment leadership achieving sales of 1 747 units for 56% segment share.

“A positive for the industry going forward is the reduced cost of finance. This is being mitigated by the continued high cost of fuel and the threat of imported cost pressures.