EASTERN CAPE-based Volkswagen South Africa lead the South African passenger car market for the seventh successive month, with the Volkswagen and Audi brands selling 4 615 units for a market share of 24 per cent in September 2001. The Eastern Cape’s three motor manufacturers – VWSA, DaimlerChrysler and Delta – together accounted for 40 per cent of new car sales and 37 per cent of the total local new vehicle market in September. In its comment on the new vehicle sales statistics for September, the National Association of Automobile Manufacturers of South Africa (NAAMSA) said new vehicle sales had held up “surprisingly well” in the light of stock shortages caused by industry-wide strike action in August and the September 11 attacks on the United States. “Aggregate industry sales of new vehicles for September, 2001 at 29 157 units reflected a year on year decline of only 8,4per cent compared to the same month last year when 31 837 sales had been recorded,” says Naamsa in its comment on the sales. Volkswagen sales and marketing director Jolyon Nash says the industrial action during August left certain manufacturers short of stock at the beginning of September. “The market was hit by the events in the US on September 11, causing hesitation among new customers entering the market in September. Thereafter expectations of new car price increases in October and a cut in the prime interest rate stimulated demand towards the end of the month." Nash said the industry stock position had improved by the start of October - historically the third strongest month of the year in terms of seasonal demand for new passenger cars. "It is important to remember that in a broader context, the South African economy is in relatively good shape with inflation under control, conservative monetary and fiscal spending policies in place, and significant surpluses being generated on the balance of payments. This will be further boosted by prospects of further interest rate cuts and tax reductions early in the new year. Should these policies be successful in guiding the economy through what is likely to be a number of challenging months ahead, the new car market for 2001 is likely to end around five per cent up on last year," he said. Ford is also optimistic that the South African motor industry will end this year in a stronger position than in 2000. “Considering the economic slowdown being experienced globally, total new vehicle sales came in stronger than we had anticipated,” says Mike McKelvie, executive director of marketing, sales and service for the Ford Motor Company of Southern Africa. “We continue to be optimistic that the South African economy will prove robust and believe that we will end this year in a stronger position than we did for the year 2000. Given all the circumstances, we are encouraged by the overall outcome for the month of September," says McKelvie. Naamsa reports that new passenger car sales at 19 453 units reflected a “relatively modest” decline of 987 units or 4,8per cent compared to the 20 440 unit sales of the corresponding month of September in 2000. Compared to the previous month of August, 2001, new car sales reflected a decline of 621 units or 3per cent. Sales of new light commercial vehicles, bakkies and minibuses at 8 646 units for the month of September, 2001 reflected a decline of 1 668 units or 16,2per cent compared to the 10 314 unit sales of the corresponding month last year. However, relative to the previous month, September, 2001 new light commercial vehicle sales reflected an improvement of 80 units or just under 1per cent. Sales of vehicles in the medium and heavy truck segments of the industry during September, 2001 reflected a mixed performance and at 411 units and 647 units, respectively, had recorded a decline of 57 units or 12,2per cent, in the case of medium commercial vehicles, versus an improvement of 32 units or 5,2per cent, in the case of heavy trucks and buses – compared to the corresponding month last year. The continued resilience in heavy truck sales suggested further improved fixed investment sentiment in the economy, reports Naamsa.