* Borrowing costs more affordable for consumers
* Sales in 2011 were highest in 5 years
* Outlook for 2012 positive
By Xola Potelwa
JOHANNESBURG, Jan 10 (Reuters) – South African vehicle
manufacturers finished 2011 on a high, recording their highest
sales in five years as a combination of lower interest rates,
base effects and concerns about the weaker rand currency
prompted consumers to buy more cars.
Vehicle sales are a key indicator of patterns in consumer
spending, which has traditionally driven the economy and their
buoyancy could be a sign that households’ pockets are improving
and the economy is on a sustained recovery after a recession in
2009.
The National Association for Automobile Manufacturers
(NAAMSA) said industry sales for 2011 were at an estimated
571,425 units compared to 492,907 units sold in 2010, a 15.9
percent growth rate.
Sales recorded double-digit year-on-year percentage growth
for every month except May, in 2011, when parts and some models
were hard to come by after an earthquake and tsunami hit
supplier Japan. Sales in September jumped to a four-year high of
30 percent year-on-year.
“The underlying momentum remains positive and it’s due to
historically low interest rates. Vehicle affordability has
improved quite significantly,” said Nico Vermeulen, director of
NAAMSA.
Continued…
