South Africa Vehicle Sales Grow 5%

Vehicle registrations in South Africa rose 5% to 56,100 units in March, according to the National Assn. of Automobile Manufacturers of South Africa. It was the slowest year-on-year improvement in more than two years.

Demand for passenger cars rose 11% to 39,000 units last month. But sales of light commercial vehicles dropped nearly 8% to 14,600 units, NAAMSA says.

The country's sales in the first quarter of 2012 increased 4% to 153,900 vehicles.

South Africa's motor vehicle exports dropped 20% to 24,000 units in March. Analysts note that Europe, which buys about one-third of South Africa's output of manufactured goods, has cut spending because of its debt crisis.

NAAMSA, which expects "subdued" sales growth this summer, as high energy prices dampen consumer spending. South African expects the growth of its economy to slow to 2.7% in 2012 from 3.1% last year.