During February 2010 a total of 26 009 new passenger cars were sold in South Africa, bringing the year-to-date February market in 2010 to a level 23.6 percent above the same period for 2009.
“We regained our passenger market leadership position, capturing 21% of the market in February. This was spearheaded by the strong market debut of the all New Polo. The New Polo has picked up from where the previous model left off by selling 3 390 units in February and thereby capturing the number one Brand position in it’s introductory month on the market in South Africa,” said Mike Glendinning, Director of Sales and Marketing, Volkswagen of South Africa.
“Volkswagen of South Africa also exported 3 404 of the New Polo’s to right hand drive markets around the world in February. By the end of 2010 we plan to export in excess of 55 000 New Polo’s to major global markets. New Polo is pivotal to our domestic and export manufacturing and sales plans going forward,” pointed out Glendinning.
“Demand for new passenger cars came in above expectations in February with improved levels of activity and underlying momentum reflected in a selling rate of new cars per day that grew in comparison to the selling rate in January - despite January being heavily supported by carryover sales into the New Year from December. The market in February was probably also boosted by growth in demand for new cars from rental car companies in preparation for the Soccer World Cup, now just 100 days away.”
“Sales will also have been supported by a slow improvement in general economic circumstances with the economy posting a higher than expected GDP growth rate of 3.2 percent in the last quarter of 2009, supported by recovery in the manufacturing sector and by government spending.”
“Further support in coming months will be generated by a slow improvement in household financial circumstances as the impact of low rates of inflation and the significant decline in interest rates during 2009, steadily filters through to the economy.”
“A further encouraging development that will provide support for the market has been the relative strength of the rand which has resulted in a decline in the rate of growth in new car pricing with the annual rate of growth in real new vehicle prices, after adjustment for inflation, down to 1.3 percent in January.”
“Demand for new passenger cars is therefore likely to reflect subdued, but steady growth through 2010, with the annual seasonal pattern of demand for new passenger cars probably being influenced by pre-World Cup rental company demand during the first half of the year.”
“Together with our VW, Audi and VW Commercial Vehicle Dealer Retail networks, we are looking forward to a much improved business environment in 2010,” concluded Glendinning.
