VOLKSWAGEN AND Audi led the South African new car market for the eighth successive month in October 2001. The success of the Uitenhage company brought the share of the Eastern Cape’s three motor manufacturers to 42 per cent of the total South African new car market. The three manufacturers – VWSA, Delta and DaimlerChrysler accounted for 39 per cent of total sales, including commercial vehicles. East London-based DaimlerChrysler led both the medium and heavy-commercial sectors. The mood in the Eastern Cape is buoyant as South African sales of new passenger cars in October appeared to shrug off predictions of economic contraction coming in at 21 735 units sold during the month. This figure is 11.7per cent up on September sales and a 4per cent improvement on October 2000, bringing the year-to-date position to a level 5.8per cent above the January to October period for 2000. Volkswagen South Africa's Sales and Marketing Director Jolyon Nash says the performance of the market in October appears to confirm the outlook that new car sales will end up some 5per cent above the level achieved for 2000. "In fact we have been particularly encouraged by our Audi brand which has for the second time this year retailed over 1000 units for the month." Nash said a large part of this encouraging performance can be attributed to the seasonal strength of the market in October. "Undoubtedly, the higher level of demand for new cars has been supported by interest rate reductions during the past five months, with the prime rate currently at it lowest level since February 1988," Nash said. "Also the country's balance of trade has performed well despite the sharp economic slowdown taking place internationally - and the export sector has benefited significantly from the weaker exchange rate. "On a more cautionary note the market is probably also currently being supported by a buy ahead of anticipated new car price increases in the wake of the recent sharp devaluation of the rand against all major currencies. However, we anticipate that the easier monetary policy of the SA Reserve Bank - which could yield further interest rate reductions - combined with higher social and investment spending by government and individual tax cuts, should lead to the creation of a platform of ongoing economic growth for the local economy during 2002 despite economic difficulties internationally." The Port Elizabeth-based Delta sees encouraging signs in the sales of commercial vehicles. “It was encouraging to see the strong performance in both the light, medium and heavy sectors of the Commercial market with the Heavy segment showing a growth of 11 percent when compared to the first ten months of last year and this would seem to indicate an improvement in general economic conditions,” says Ian Nicholls, Delta Motor Corporation’s Director of Sales and Marketing.