MOTORING: Vehicle Sales Strength Continues
Recent Gauteng Business News
“While the total sales number is encouraging there remains some lack of clarity in the market with sales at dealer level somewhat softer than might be expected or indicated by the overall market,” says Malcolm Gauld, General Motors South Africa’s Vice President Sales and Marketing. “In contrast deliveries through the direct sales channel – mostly to rental fleets and government tender business – are firm with rental fleet demand especially at a significant high.
“Factors that will have impacted on dealer sales are a degree of stock imbalance in the aftermath of recent industrial action and perhaps a wait-and-see attitude amongst buyers anticipating a further decline in interest rates before committing to new or additional vehicle finance.
“On the positive side the motor industry is recovering well from the hangover of strike action and there is a high expectation within the economic forecasting community that we will see a further 50 basis point reduction in the interest rate before year end. New model activity continues apace to add excitement to the market.
“The outlook for November and December is for a stronger market at dealer level and an overall strong finish to the year, especially if the expectation of an interest rate reduction is realised. Current indications are for an increase in sales for the year in the 23-24% range over 2009. That in contrast to expectations of just 5% growth this time last year.”
For GMSA the month was marked by the rise of the Chevrolet Spark to number three in the passenger vehicles sales log with 1 418 sales for the month. In the light commercial market the Corsa Utility continued its strong form with 1 358 sales to record the model’s best sales month for 2010 at dealer level.
Business News Sector Tags: Motoring|