Auto industry on target for improved sales

AFTER an extremely difficult year, the South African automotive sector is on target for an improved domestic sales environment during 2010 as well as higher levels of production on the back of continued recovery in demand in export markets, the National Association of Automobile Manufacturers of South Africa says in its latest quarterly review.

It says an improvement in consumer sentiment and business confidence during 2010 is anticipated. “The cumulative 5.5% decline in interest rates since end 2008 should improve the financial position of households and contribute towards an underlying improvement in the growth of vehicle sales ...

“Additionally, the 2010 Soccer World Cup event has boosted demand by the car rental industry. Moreover, reduced cost pressures on the back of the exceptionally strong rand should facilitate stable new vehicle pricing for some time.”

It points out that on the back of these factors, projections for 2010 have been revised upwards. Domestic sales are expected to improve from 395000 in 2009 to about 451000 in 2010 – an increase of around 14%. However, the improvement will be off a very low base. — I-Net Bridge

Source: Indiacar.com Source : http://www.dispatch.co.za/ (4/20/2010)