NAAMSA vehicle sales statistics for July provide a further indication that vehicle purchases are stabilising at a new albeit low level. The total sales of 34 503 units, including sales by AMH, were marginally up on June sales of 33 082 units. Year on year sales are down by 32,7%. Export sales continued to remain under pressure as a function of subdued demand in key export markets.

“The continued level trend in vehicle sales during July is a welcome positive signal for the motor industry,” says Johan van Zyl, President and CEO of Toyota South Africa. “There was marginal growth over sales in June but we are of the opinion that the market may have been a bit stronger than is evident. Strike action during the last week of July will have impacted negatively on new vehicle registrations and constrained volumes to some extent but we cannot provide any definitive measure of that at this time. August sales may be inflated to an extent by this.

“Certainly our dealers are reporting an increase in showroom traffic as both private buyers and fleet customers are starting to show a renewed interest in new vehicle purchases. Interest rate cuts usually take quite some time to translate into market activity and it seems that at last the impact of the aggressive rate cutting cycle is having a positive impact.

“The latest inflation data is positive and could provide scope for further interest rate reductions. We are also entering time in the year when there is typically an increase in fleet activity so there are positive indicators for the market in the months ahead, at least for stability in sales.”

Toyota continued its market leadership with a 22,5% share of sales with the Hilux once again the dominant performer in the market with 2 653 sales for the month, the only vehicle to better sales of 2 000 units for the month.