NEW VEHICLE sales in South Africa grew by an annual rate of 12.5 per cent in July 2001, according to the official National Association of Automobile Manufacturers of South Africa (Naamsa) figures. Uitenhage-based Volkswagen South Africa jumped into a significant lead over its nearest rivals, with its Volkswagen and Audi brands cornering more than a quarter of the new passenger car market. The three Eastern Cape-based motor manufacturers – VWSA, DaimlerChrysler and Delta together accounted for over 40 per cent of the national new vehicle market, 43 per cent of new cars, 35 per cent of light delivery vehicles, 38 per cent of medium commercial vehicles, and 40 per cent of heavy commercials sold in South Africa during July. The new car for the month stood at 21 528 units, which is 9.5 per cent up on July 2000. This brought the year to date position for 2001 to 8.6 per cent above sales the same period for last year. Volkswagen's Director of Sales and Marketing Jolyon Nash said “our business outlook remains positive on the basis of this strong demand - one in every four new cars bought during July came from Volkswagen South Africa - and we expect that the new car market will show a growth of between 5-7 per cent this year.” Nash said the strength of July sales was assisted by a number of factors including the decline in interest rates - an important driver for new car demand - by one percent over the period. "From a household income perspective many consumers are now beginning to feel the benefit of lower rates of taxation and will find further relief from the sharp reduction in the price of petrol that has recently taken place," he said. "The combination of the impact of lower interest rates on bond and car repayments - together with lower fuel prices and lower rates of tax taxation - should put about R400-R500 per month additional disposable income back into consumers pockets during the coming months. This will support overall levels of consumption demand and ultimately demand for new cars." For the full Naamsa figures, go to www.naamsa.co.za