Volkswagen Group South Africa keeps its top position in the passenger car market


Volkswagen Group South Africa has kept its top position in the passenger car market with total sales of 6 461 units and market share of 21.9% in April 2012.

Naamsa Volkswagen

In April 2012, a total of 29 517 new passenger cars were sold in South Africa, a decline of 24.3 % when compared to March 2012 and a growth of 12.1% against the same period in 2011. The month-on-month sharp decline was caused by the number of holidays during the month of April and was also amplified by strong new car sales in March.

“In spite of the decline, the encouraging fact however is that the selling rate of the new cars per day in April decreased by only 10.5% when compared to the selling rate in March, when the seasonal analysis of the selling rate would have indicated an expected 13% decline. From this perspective of the selling rate of new cars per day, April performed reasonably well as has generally been the case for the new car market so far in 2012,” said Mike Glendinning, Director: Sales and Marketing, Volkswagen Group South Africa.

“The somewhat more robust performance of the new car market so far in 2012 is reflected in similar developments in the broader economy. The Reserve bank’s leading indicator of economic activity has been improving slowly but steadily since August 2011. It is currently back at a level equivalent to April 2011, suggesting modest but sustainable and ongoing growth through 2012. The RMB/ BER business confidence indicator for the first quarter 2012 is in positive territory and the Kagiso purchasing managers index remains in expansionary territory.”

“Volkswagen Group South Africa maintained its top position in the passenger car market for the fourth consecutive month in 2012. Our two top-selling Brands, Polo Vivo (2 256 units) and Polo (1 766 units) continued their market dominance in their respective segments,” added Glendinning.

The Audi Brand recorded its best April sales yet with 1 129 units sold. Audi’s performance was aided by the A4 sedan/Avant with the sales of 384 units.

Volkswagen Commercial Vehicles reported sales of 707 units and 358 of these units were Amarok Single and Double cabs. Supply constraints in Argentina have severely impacted on the delivery of the Amarok range into South Africa.

Glendinning concluded: “With regard to demand for new passenger cars, the rate of growth currently reflected in the market is likely to continue for the foreseeable future. The market will continue to be supported by growth in the real disposable income of households and real new vehicle prices which continue declining, a trend that began in May 2010. Furthermore, debt servicing costs remain low which significantly enhance the affordability of new cars.”