Sustained Demand For Motor Vehicles During May
Total vehicle sales reflect sustained demand during May with 50 228 sales
Market up 20,7% on May 2011
GMSA delivers 5 845 new vehicles for 11,6% share of the market
Chevrolet Utility continues to lead sub-1 ton segment with 1 898 sales
General Motors South Africa (GMSA) delivered 5 845 new vehicles during May to capture a total market share of 11,6% a figure 0,5% up on its share in April. The new Chevrolet Utility contributed 1 898 sales to GMSA’s total as the leader in the sub-1 ton light commercial vehicle market. Together with sales of 1 012 Isuzu KB pick-ups, GMSA captured a 23,6% share of the light commercial market as the second ranked supplier in this sector.
“The increase of 20,7% year-on-year, and 17,9% up on April provide a misleading view on the growth rate of the industry”, says Malcolm Gauld, GMSA’s Vice President Sales and Marketing. “Total sales of 50 228 units were slightly below our expectations but still provided a welcome boost to year on year growth. The industry total for the first five months stands at 228 070 vehicles for a gain of 9,4% on the same period last year. May was the 30th successive month that the motor industry has experienced year-on-year growth.
“May saw strong support at dealer level with 43 088 of total sales delivered through the dealer channel, a good indicator of private buyer participation in the market. Passenger vehicles accounted for 34 820 sales, up 20,8% on May last year. Light commercial vehicles contributed 12 907 units to the total to show a gain of 21,5% on May last year. This number provides an indication of positive activity in the business sector but is also indicative of the inventory position in the market.
“There was significant new model activity in the market during May together with a high level of promotional activity that will have supported sales. There is a strong accent on affordable vehicles at this time with excellent value propositions for customers. An example of this is the repositioning of the Chevrolet Spark, now a locally produced model for GMSA, with significant price reductions announced with the localisation of this model. We can expect further excitement at the lower end of the market with tangible benefits for the customer, particularly for the first time new car buyer.”
“Looking ahead we see no firm basis to increase volume forecasts for the year. Year-on-year sales are approaching the upper limit of those forecasts but this may not be sustainable. High fuel costs and pressure on the Rand are factors that will likely impact on the market in the months to come.”