Vehicle sales move into slow lane – Naamsa

Freight is keeping the local
automotive industry moving.
This comes at a time when
jobs are being shed in the South
African automotive industry
as the sales momentum of
passenger cars starts slowing
down, according to the second
quarter report by the National
Association of Automobile
Manufacturers of South Africa
(Naamsa).
Sales of heavy and extra-heavy
commercials showed a “strong
upward momentum” in a year-onyear
quarterly comparison.
In contrast, there is a
“substantial decline in growth
momentum of the new car, light
and medium commercial vehicle
segments,” says Naamsa director
Nico Vermeulen in his quarterly
report.
He warns that the short to
medium term outlook for industry
appears less favourable than at
the beginning of 2011.
“The direction of the global
economy is uncertain at this
stage and international financial
markets are characterised by
extreme volatility and turbulence.
This may impact on future export
sales.
“South Africa, with its relatively
open economy, will be affected
by any slow-down in world
economies and consumer spending
in South Africa is also likely to
decrease in future,” he says.