New vehicle sales were at a highly satisfactory level in August 2012. Unit sales have maintained their recovery from somewhat depressed 2012 Q2 levels. Actual sales were up from 54087 units in July to 56253 units in August 2012. On a seasonally adjusted basis unit sales were up by 1831 units.
It should be noticed that on a seasonally adjusted basis sales are well up on a year before but are little changed from sales levels (when seasonally adjusted) realised in December 2011. Given the surge in sales that materialised late in 2011, this higher base of sales will make year on year growth comparisons (currently 9% p.a) more onerous in the months to come.
Yet if currently favourable trends persist, the retail sector of the motor industry could look to a monthly sales rate of 56 000 units this time next year, compared to the current rate of 52 600 new units now being sold. This would represent a growth trend of about 7% that, if realized, would be regarded as highly favourable for this sector of the economy. Clearly, lower and stable rates of interest are helping to sustain this important sector of the SA economy. Brian Kantor
