VW EXPECTING SALES BOOM FOR 2011

During December 2010 a total of 26 615 new passenger cars were sold in South Africa. Total new passenger car sales in December, including sales not reported in detail to NAAMSA, increased by a huge 38.9 percent when compared to December 2009, bringing the full year 2010 new passenger car market to a level 30.6 percent above the market for 2009.
 

“Sales of new passenger cars ended 2010 strongly with sales in December above expectations. The selling rate of new cars per day in December was higher than the selling rates per day achieved in the first seven months of the year,” commented Mike Glendinning, Director of Sales and Marketing, Volkswagen Group South Africa.

“Volkswagen Group South Africa sold a total of 67 023 passenger cars in 2010 – growth of 34.3% over 2009 – 4% ahead of the total market year on year growth. With 19.9% of the total passenger market, Volkswagen Group SA was again passenger market leader. “

“Notably, Polo Vivo achieved 23 297 sales in 2010, firmly establishing the Brand as South Africa’s top selling passenger car. The new Polo sold 16 006 units in 2010, ensuring that the Volkswagen Brand continues to dominate the affordable, entry level segment of the market.   A very satisfactory 2010 result for Volkswagen Group South Africa.”

“The all new 1 Ton Amarok double cab has made a very satisfactory entry into the pick-up market with November and December sales totaling 814 units.”

“Supported by ongoing pent up replacement demand, new car sales were encouraged in 2010 by sound growth in household disposable income during the first three quarters of the year, low and declining levels of inflation, falling interest rates which declined to a thirty-six year low, an encouraging recovery in the net wealth of households, a sharp decline in debt servicing costs, a slow improvement in finance approvals from the banking sector and the strength of the currency.”

“Looking ahead to 2011, inflation and interest rates are likely to remain low, household disposable income looks set to continue improving. Business and consumer confidence should reflect improvement during the coming year, annual rates of growth in credit extension to the private sector and in the money supply, while still at low levels, are clearly reflecting recovery.”  

“Given this outlook for 2011, we expect continued growth in demand for new vehicles, but probably at a slower rate than experienced in 2010, “concluded Glendinning.   

STORY BY VOLKSWAGEN