Strong Competition Drives June Sales Performance
information supplied by: Toyota South Africa
03 July 2012
STRONG COMPETITION DRIVES JUNE SALES PERFORMANCE
Passenger vehicle sales recorded its strongest June since 2006 with total sales of 35 918 units, according to the National Association of Automobile Manufacturers of South Africa (Naamsa). This, along with very strong light commercial vehicle (LCV) charge, pushed market past fifty thousand units to 51 891 units in June.
“We continue to record very strong marketing activity amongst virtually all vehicle brands,” says Calvyn Hamman, Senior Vice President of Sales and Marketing at Toyota South Africa Motors. “This has created a buyer’s market, which is further fuelled by a number of new vehicle introductions in key market segments.”
According to Mr Hamman the market is further supported by a favourable interest environment and a return to the market of customers who have delayed the replacement of their vehicles over the past few years.
One example of a new introduction that has created significant market interest and supported sales growth is the new Toyota Etios. Toyota’s new entry level contender was delivered to 2 105 new customers in June and this has established it as one of the top selling passenger vehicles in South Africa in its first full month of sale.
“The Etios has entered the highly competitive Sub B-segment and it has immediately established itself as a key contender in this fast growing market. It is interesting to note that the Etios has significantly grown this market segment, which signals that more new customers and used vehicle buyers are entering this market thanks to a number of affordable offerings,” says Mr Hamman.
A high level analysis of June sales data indicates that dealer sales, a proxy for private customer purchases, account for 80% of total market sales. Toyota trumps this industry figure with dealer network sales of 86%. This is partially driven by the success of new and recent introductions such as the Etios, Avanza and upgraded Hilux and Fortuner ranges.
Improved customer demand is further supported by data from Toyota Financial Services (TFS). According to TFS the volume of finance applications for new vehicles has grown by 15.7% in June, compared to the average figure for the past six months.
The Hilux retains its position as South Africa's top selling vehicle with sales of 3 067 units, while the Fortuner again crossed the 1 000 unit mark with sales of 1 030 units sold in June. Hilux sales were one of the key drivers of the strong LCV market, which recorded its strongest June since 2008.
"Vehicle demand remains strong and we expect that this momentum will continue for the second part of this year. With this in mind we expect then market to break through the 600 000 unit barrier in 2012," says Mr Hamman.
Toyota in June celebrated a significant export achievement, after vehicle exports surpassed local sales volumes. Toyota South Africa Motors in June exported 10 268 units to over 57 markets across the world.
"We will continue to monitor the European economy for its impact on export volumes and for the possible knock on impact of any further decline in this overall market on our local economic reality" says Mr Hamman.
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