The domestic new-vehicle market expanded for the first time this year as March new-vehicle sales inched up 1.1%, to 49 233 units, compared with the same month last year.
Sales numbers released by the Department of Trade and Industry on Tuesday showed that March new-passenger car sales gained 3.7%, to reach 32 176 units.
Sales of new bakkies, minibuses and vans, at 14 701 units, contracted by 2.3%.
Sales of medium trucks, at 722 units, dropped by 14.6%.
Sales of new heavy trucks and buses declined by 7.9%, to 1 634 units.
March export sales, at 27 438 vehicles, declined by 8.1% compared with March last year. Sales had been affected by the BMW Rosslyn plant switching over from 3 Series production to X3 production.
The National Association of Automobile Manufacturers of South Africa (Naamsa) noted that the proliferation of public holidays during March had impacted on domestic sales during the month. This was, however, offset by consumers rushing to showroom floors to avoid the April 1 increases in value added tax, vehicle emission tax and ad valorem duty.
The association added that it expected the 2018 South African new-vehicle market to improve by around 3% compared with last year.
“Medium-term prospects for the South African economy had improved considerably on the back of the decision by Moody’s to retain South Africa’s international and domestic credit rating at investment grade with a stable outlook, as well as the 0.25% reduction in official interest rate at the end of March," said Naamsa.
“In addition, the continuing strength in the exchange rate should impact positively on new vehicle price inflation going forward.
“As a result of these developments – together with improved business and consumer confidence – economic growth for 2018 could recover to around 2% and this, in turn, would benefit domestic new vehicle sales over the balance of the year.”
Top-selling cars, bakkies and vans in March:
1. Toyota Hilux 3 825
2. Ford Ranger 2 753
3. VW Polo Vivo 2 736
4. VW Polo 2 121
5. Nissan NP200 1 562
6. Toyota Quantum 1 540
7.Toyota Fortuner 1 274
8. Isuzu KB 1 273
9. Toyota Corolla/Auris/Quest 1 189
10. Hyundai Grand i10 1 032