MOTORING: Passenger Car Market Remains Buoyant in September
Recent Gauteng Business News
“Despite significant stock shortages as a result of recent industry wide strikes, the Polo Vivo range continued to dominate the entry segment with sales of 1,939 units,” said Mike Glendinning, Volkswagen Group South Africa Sales and Marketing Director. “Supply of both the new Polo and Polo Vivo ranges, manufactured in our Uitenhage plant, was adversely impacted by the prolonged industry strikes.”
“While down on what was an exceptionally buoyant month of new passenger car sales in August, the September new passenger car market performed well, supported by seasonally strong demand from rental car companies.”
“The total car market in September was negatively impacted by both growing stock shortages as a result of widespread industrial strike action and a buy ahead of new passenger cars in August before the introduction of the CO2 vehicle emissions tax on 1 September 2010.”
“Despite these negative influences, levels of activity in the market remained buoyant with September registering the second highest selling rate of new passenger cars per day for 2010,” said Glendinning.
“Inflation has fallen significantly and appears under control. Interest rates have fallen to a thirty year low, growth in real disposable income of households registered 4.8% in the second quarter slightly down from 5.1% in the first quarter. The net wealth of households to disposable income, as measured by the Reserve bank, continued growing in the second quarter, up 15.3% year-on-year. Debt servicing costs have declined to more manageable levels. House prices are slowly improving and consumer confidence remains at relatively high levels.“
“Taking all these factors into account, the total new passenger car market remains on track for up to 28% growth in 2010 over the market achieved in 2009,” concluded Glendinning.
Business News Sector Tags: Motoring|