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News Article - Automotive
Commercial vehicle sales point to improvement in SA economy
Posted on: Friday, 14 December 2001. Article source: Eastern Cape Business News
AN INCREASE in sales of commercial vehicles in South Africa during November 2001 points to an improvement in business and consumer confidence, according to Ford Southern Africa. November 2001 sales of light commercial vehicles showed a 22.8 per cent improvement over November 2000. "We are particularly pleased with the retail sales performance of new light commercial vehicles, as the increase over November 2000 is significant. Hopefully it indicates an improvement in business and consumer confidence. This is perhaps also borne out by the new heavy commercial vehicle retail sales figure coming in at over 14.3 per cent over last November,” says Mike McKelvie, Ford’s executive director of marketing, sales and service. Eastern Cape manufacturers supplied 33 per cent of the light commercials, 37 per cent of medium commercials and 33 per cent of the heavy commercials. East London-based DaimlerChrysler led the heavy commercial sector. "We are encouraged by the fact that all three commercial vehicle sectors (light, medium and heavy) have held their own for the year-to-date, with each showing an increase in sales over the period January to November 2000,” adds McKelvie. The Eastern Cape also led new car sales, with Volkswagen South Africa heading up the passenger market sector for the ninth consecutive month, and a market share of 22.3 per cent. VWSA and the two other Eastern Cape motor manufacturers DaimlerChrysler and Delta, accounted for 40 per cent of the total South African new car market in November. "In fact, despite the recently announced lower than expected rates of GDP growth for 2001, the industry strike in August, the impact of the attack on the United States in September, and the sharp slowdown taking place in world growth, the South African car market has held up rather well," says Volkswagen South Africa Sales and Marketing Director Jolyon Nash. “we anticipate the full year market for 2001 ending between 5-6 per cent above the market for 2000. In 2002, with the world's economies slowing sharply and with South Africa's economy growing more slowly than expected, the outlook indicates a deterioration over market conditions experienced this year," he adds.
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