Vehicle Sales Growth Slows in S. Africa

Car and truck sales in South Africa will expand only 4.5% to 652,000 units this year half the growth rate of 2012, predicts the National Assn. of Automobile Manufacturers of South Africa.

NAAMSA predicted in January that vehicle deliveries would rise 7% this year compared with gains of 16% in 2011 and 25% in 2010.

Volume climbed 8% to 268,200 vehicles in the first five months of this year but increased only 3% to 53,600 units in June.

The trade group attributes its downwardly revised outlook to the country's sluggish economy, higher vehicle emission taxes and a weak rand that is driving up the price of imported vehicles.

NAAMSA forecasts that passenger car sales will expand 4.5% to 460,000 units this year. It expects South Africa's light commercial vehicle market to grow to 163,000 units from 156,200 units in 2012.