TWO EASTERN CAPE motor manufacturers increased their shares of the new vehicle market in February 2003. Volkswagen and Audi registered a market share of over 23 per cent – up from 19,1 per cent in January thanks to sales of the new Polo. Another new model – the Corsa – helped boost Delta’s market share to 11 per cent in February. Delta had less than seven per cent of the new passenger car market in January. These increases in market share come as the overall new vehicle market shrank by 8.6 per cent year on year. But, while car sales were down, there was continued growth in medium and heavy commercial vehicle sectors – which are a good barometer of the state of the economy. “Although the market came in lower than we had forecast, it is nevertheless pleasing to note that heavy commercial vehicle sales showed growth in February, extending a positive trend in these segments,” says Nigel Harris, Director: Marketing and Sales for the Ford Motor Company of Southern Africa. “We believe that the Government continues to be concerned with ensuring that South Africa experiences real economic growth this year and were delighted at the measures that were announced during the Budget speech recently delivered by the Finance Minister. We expect the business cycle to respond positively to this going forward.” Car makers are also confident that sales will increase, thanks to the continued growth in tourism and expected interest rates drops later in the year. Volkswagen's general manager communication, Matt Gennrich, says “despite the performance of the market in February, the outlook for new car demand in 2003 has improved in recent months. Steady growth in the number of tourists visiting South Africa is also expected to continue supporting growth in demand for new vehicles from the rental car industry during the course of 2003. Furthermore, the rand has retained the gains against all major currencies made in late 2002 and early 2003. This continues to reflect upside potential on the back of positive international sentiment towards the currency and South Africa. With real interest rates still at historically low levels, such restraint in new vehicle price increases in a highly competitive market environment in the early months of the year, could assist in supporting and stimulating demand for new vehicles,” says Gennrich. Eastern Cape vehicle assemblers were all in the top five in South Africa during February – Volkswagen in second position, and Delta and DaimlerChrysler in fourth and fifth respectively.