New Report Available: South Africa Autos Report Q4 2014

From: Fast Market Research, Inc.
Published: Tue Nov 18 2014


The near-term outlook for South African new vehicle sales remains downbeat this quarter, with the local economy experiencing significant headwinds. As of end-August 2014, new vehicle sales were down by almost 16% year-on-year (y-o-y), at 372,526 units, according to information from the National Association of Automobile Manufacturers of South Africa (NAAMSA).

Breaking down the headline sales figure for August 2014, passenger car sales were down by 2.7% y-o-y, at 37,953 units, while LCV, bakkie and mini bus sales actually rose, by 2.1%, to 14,942 units. Medium trucks showed a fall of 3.5%, while heavy trucks and buses showed a slight gain, of 0.1%. NAAMSA commented that 'continued strength in commercial vehicle sales was encouraging and suggested improved investment sentiment'. The one bright spot remains exports, which were up by 18.5% y-o-y, at 25,027 units in August.

Full Report Details at
- http://www.fastmr.com/prod/900793_south_africa_autos_report_q4_2014.aspx?afid=301

Looking forward, NAAMSA shares BMI's view that the near-term outlook for South African new vehicle sales remains challenging. 'Relatively low economic growth, recent increases in interest rates and above inflation new vehicle price increases - would combine to dampen new vehicle sales momentum'.

Last quarter, BMI made significant downward revisions to our 2014 sales forecasts, now targeting a 23.2% fall, which will take total new vehicle sales just below the 500,000 unit mark. Our near-term negative stance is backed up by poor macroeconomic fundamentals, with BMI's Country Risk team having again revised down its 2014 GDP forecast, down to 1.5%, from 1.8% previously. Poor Q214 data released by the South African Reserve Bank (SARB) reinforce our view for South Africa to experience slow economic growth over the coming years due to weak consumer demand, lacklustre investment, relatively subdued commodity prices, and sporadic strikes and power cuts. The economy grew by just 0.6% at a quarter-on-quarter seasonally adjusted and annualised rate (q-o-q SAAR), with private consumption and...

The South Africa Autos Report features the latest data and forecasts covering production, sales, imports and exports.

Business Monitor International (BMI)'s South Africa Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in South Africa.

Key Benefits

* Benchmark BMI's independent automotives industry forecasts on South Africa to test other views - a key input for successful budgetary and planning in the South African automotives market.
* Target business opportunities and risks in the South African automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Africa.

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
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