Bumpy ride awaits car industry

EVEN though December car sales ended 2014 on a high note, last year’s overall car sales recorded a decline. After four successive years of growth, 644 523 cars were sold last year, which was down slightly from the 649 216 sold in 2013.

The year-on-year decline of 0.7% was announced yesterday by the National Association of Automobile Manufacturers of South Africa (Naamsa).

Releasing the total sales for last year, Naamsa said December sales ended on a strong note with gains of 10.7% compared to the corresponding month in 2013. One of the biggest winners in December was the Volkswagen Group of South Africa (VWSA), which increased domestic sales to 9179 compared to 7491 units in November.

General Motors South Africa (GMSA) also increased its domestic retail sales last month with 4412 units sold. GMSA vice-president of vehicle sales, service and marketing Brian Olson said this year's sales would decline further, continuing along similar lines as the year-on-year drop from 2013 to last year.

 - Cindy Preller