May car sales figures show an increase of 7,5%. These figures were compiled by the National Association of Automobile Manufacturers of South Africa (Naamsa) and released on Monday by the department of trade and insustry. Naamsa said:

Aggregate industry sales of 53 997 units for May reflected an increase of 7.5% or 3 750 vehicles from the 50 247 units sold in May last year.

The data shows that sales to corporate fleets, the rental industry and the government accounted for 9%. But this is not any indication of what lies ahead for the coming year. Naamsa said:

Domestically‚ expectations of lower GDP growth and above-inflation new vehicle price increases – as a result of the sharply weaker exchange rate and the April increase in carbon dioxide vehicle emission taxes on new cars and certain categories of new light commercials – will contribute to a more difficult trading environment.

Head of asset finance at Standard Bank, Sydney Soundy said:

The exchange rate will impact the vehicle market through vehicle price inflation and indirectly through the fuel price fluctuations…The rand’s weakness will also transfer onto both vehicle prices and energy costs (in particularly fuel prices)…Fuel prices have risen by 7.8% in petrol (inland) and 11% in diesel (inland) since Jan 2012…The price of fuel in the country has gone up by 210.5% and 354% in petrol and diesel since 2001.

[Source: Fin24]