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Vehicle
sales in South Africa for the first half of 2006 totalled
a record 310 280 units - 17,8 per cent up on the performance
a year ago. Sales added from the non-reporters - mainly
Imperial's Associated Motor Holdings - boosted the half-yearly
sales to 342 604 units, which was an improvement of
16 per cent on sales of 287 914 units in the first half
of 2005.
These results emphasise the non-reporters' growing
share in the overall market as they have improved from
8,5 per cent to 9,4 per cent in the past year and in
the first six months of 2006 accounted for 32 324 sales.
This places them at fourth overall behind Toyota, Volkswagen
and General Motors SA in the share stakes.
However, casting a cloud over the strong local sales
and reports of substantial growth in exports, is the
sharp growth in the country's trade deficit. Fingers
are being pointed at the motor industry, which is a
major user of foreign exchange and is being singled
out for criticism as the government is conducting its
mid-term review of the Motor Industry Development Programme.
(See Industry
On High Alert)
Meanwhile, despite the trade deficit concerns, half
year sales for 2006 show the second quarter's figures
being boosted by a strong June. The 56 952 sales recorded
in the month were the highest yet, and up 13,8 per cent
on the corresponding month in 2005.
Furthermore, sales in all segments recorded an improvement
compared with the first half of 2005. Year-on-year car
sales were 18,8 per cent ahead, while LCV sales were
up 14,6 per cent despite a slowdown in the growth. MCV
sales were up 18,1 per cent on a year-to-date basis,
while the heavy truck and bus segment remained 24 per
cent ahead of the corresponding period a year ago. The
medium and heavy commercial segments are expected to
continue to benefit from strong fixed investment and
infrastructural developments - many of them linked to
the 2010 World Cup.
The industry's market leaders, Toyota and Volkswagen,
both performed well in the first half of the year and
improved market penetration compared to a year ago.
Toyota showed the biggest improvement, going up 1,4
per cent in market share to 22,5 per cent on sales of
70 581 units, with VW improving by 0,6 per cent to 51
070 units.
A very tight battle is being waged between GMSA (39
834 units sold) and Ford Motor Company for third, with
the General's local sergeant holding off the determined
Blue Oval by a mere 211 units!
DaimlerChrysler retained its fifth spot, despite shedding
1,7 per cent in share (going down to 9 per cent). Only
Renault, Peugeot and Volvo sold fewer cars in the first
half of 2006 compared with the same period in 2005.
Interestingly, the only change in the ranking of the
top 10 manufacturers and distributors came at the bottom
of the table, where relative newcomers Tata jumped from
tenth to ninth position, displacing Peugeot from the
top ten. Fiat Auto SA (FASA) has moved out of the 'wilderness'
into ten spot.
| PASSENGER
CARS |
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The fight for superiority in the high profile
passenger car market is extremely close this year.
With 48 856 units sold, Volkswagen is only 82
units and 0,1 per cent share ahead of long-time
rivals, Toyota. The latter's share increased by
4,2 per cent to 23,4 per cent, while VW improved
by a slender 0,5 per cent, despite adding an additional
product range in the form of the Spanish-made
Seat.
(At this stage last year the gap between VW and
Toyota was 6 622 units and 3,8 per cent).
On the launch of Seat, the Spanish brand, which
has been struggling in Europe where it has been
losing both share and money, is now restructuring
to widen the brand's appeal. We'll have to see
how well the new range fares in South Africa,
where the initial monthly sales target are set at
about 300 units. Sales in its June launch month
totalled 123 units.
But there was plenty of action further down the
list, too, as Ford jumped from fourth to third
at the expense of DaimlerChrysler - the biggest
loser in the car sales stakes after dropping 2,1
per cent in penetration. BMW moved up from sixth
to fifth, ousting another big loser, GMSA, which
dropped 1,7 per cent in share. Renault and Nissan
retained their relative positions in seventh and
eighth places, respectively, while Honda jumped
from outside the top ten to ninth. Tata made its
first appearance in the passenger car top ten
in the final spot.
In terms of the top-selling individual model
ranges the extensive Volkswagen Polo hatch and
sedan line-up has vaulted over the long-time market
leading family of Toyota Corolla/RunX/Verso.
However, Toyota's range of Yaris hatchbacks and
sedans has provided the surprise of the segment
by leaping straight into third position, despite
having only one engine size and no diesel variants.
The newcomer displaced the evergreen VW CitiGolf
from third place, whence it slipped to fourth,
ahead of its long time rival, the Toyota Tazz,
which was recently discontinued. (See Toyota's
Tazz Calls It A Day)
The BMW 3-Series has moved up to sixth position,
overtaking the Mercedes-Benz C-Class, which was
also trumped by the Opel Corsa, pushing the Merc
down to eighth. Ford's best-seller, the Fiesta,
retained ninth position, while the Indian Tata
Indica and Indigo line-up has shot up from "nowhere"
to tenth, ousting the VW Golf 5, as well as the
Renault Megane/Scenic.
In the SUV segment, Toyota's Fortuner - with
sales totalling 1 571 units, has displaced the
Nissan X-Trail (1 525 sales) from the top. The
new Mercedes-Benz M-Class provided another surprise
as it jumped into third place with 1 266 units
sold.
Fourth spot went to the Toyota Prado (1 222 sales),
ahead of the Land Rover Discovery 3 (1 172) and
a tie for sixth between the top-selling 'soft-roader',
the Toyota RAV4 and the Jeep Cherokee (1 009 sales
each). However, it seems this Jeep model is the
big loser in the SUV war, with sales tumbling
by 35 per cent on a year-to-date basis.
Interesting, too, is the disappointing showing
by the VW Touareg, which sold only 346 units in
the first half of 2006, despite massive advertising
and marketing efforts, and the addition of a 3,0-litre
TDI to its line-up.
On the other side of the coin, the success of
the more excessive Range Rover Sport is also worth
mentioning. The Sport outsold the Touareg by 53
units in the first half of 2006, despite a much
smaller range and the legacy of recent high profile
product problems with other models in the Land
Rover range, further underlining the intrinsic
value of this brand in South Africa.
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| LIGHT
COMMERCIAL VEHICLES |
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Moving to light commercial vehicles, GMSA's Opel
Corsa Utility has unseated the Toyota Hilux to
allow GM to take overall leadership in the market.
Third-placed Ford Motor Company, fourth-placed
Nissan and fifth-placed DaimlerChrysler have retained
their positions in the LCV segment, though they
all lost share in the period under review. Besides
GMSA, the only significant gain in share came
from Tata, which is now in sixth spot with a 3
per cent share - 1,2 per cent up on a year previously.
As mentioned earlier, the Corsa Utility was the
best-selling LCV in the first half of 2006, moving
up from fourth spot a year ago. Hilux lost 4,4
per cent in share, but still managed to take runner-up
spot, only 193 units ahead of long-time rival
Isuzu KB. Ford's Bantam was in fourth place, emphasising
the strong demand for half-ton pick-ups as even
the Nissan B140 (which has hardly changed in more
than 30 years) managed to hang on to a place in
the LCV top ten.
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| MEDIUM
COMMERCIAL VEHICLES |
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The MCV market (3 501 - 8 500 kg GVM) is another
segment where Toyota is under pressure, this time
from Indian-sourced Tata. Though Toyota's Dyna
remains the best seller, it has lost 4,6 per cent
in share, while Tata has performed strongly. At
the half-year mark the gap between Toyota and
Tata was only 86 units, compared to a difference
of 344 units a year previously.
One-time leader of the MCV market, DaimlerChrysler,
was another big loser as it shed 3,3 per cent
despite now being able to add Mitsubishi Fuso
sales to those of its Mercedes-Benz models.
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| HEAVY
TRUCKS |
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Toyota Trucks' Hino range continued to hold the
lead in the heavy truck market (8 501 - 16 500
kg GVM) from Nissan Diesel and GMSA's Isuzu range.
Again all three companies showed a loss in share,
thanks to Tata's success with a phenomenal 11,2
per cent growth in penetration. Tata is now placed
fourth, ahead of DaimlerChrysler.
Tata's onslaught on the South African commercial
vehicle market stretches across all the truck
segments now as it is also an increasingly important
player in the premium end of the truck market
(GVM over 16 500kg), with share jumping 5,5 per
cent on the back of a near six-fold increase in
sales - 348 sales in the first six months of this
year compared to only 62 units sold in the first
half of 2005.
In the process the newcomer from India jumped
from tenth to fifth position on the ranking list,
overtaking established players Scania, Volvo,
Toyota (Hino), GMSA (Isuzu) and Iveco. The biggest
losers in this top end of the truck market were
Volvo (down 5,1 per cent), DCSA (down 3,7 per
cent) and Scania (down 1,3 per cent).
The only market that Tata has not yet attacked
is that for buses over 8 501 kg. Here the Europeans
continue to dominate, with MAN heading sales despite
losing 4,5 per cent in share (down to a still-dominant
40 per cent). Scania and DaimlerChrysler are the
only other companies to have sold in excess of
100 units year to date in a market that increased
by 23 per cent to 553 buses sold in 2006. This
market now awaits the arrival of Volkswagen with
buses from its Brazilian subsidiary and it will
be interesting to see if Tata will also join the
fray in this vehicle segment.
Looking ahead to the second half of this year
the biggest threat to the industry is that of
further interest rate hikes, which could put the
brakes on the current rate of growth. Industry
commentators believe that the sales momentum will
continue in the second half of this year, albeit
at a slower rate, bearing in mind that sales levels
increased dramatically during the second half
of 2005.
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