Toyota's sales performance gave it a market share of 24.6% for the month. If one adds the export figure of 5,677 vehicles it gives the manufacturer a healthy 26.4% share of total domestic and export sales.
Toyota attributes much of October's success to the wide acceptance of two new models, the Auris hatch and the latest version of the evergreen Corolla.
Toyota's three volume platforms, the Corolla (including Auris), the Yaris, and the Hilux, took the top three places in the overall vehicle sales log. The Corolla was the most popular vehicle in South Africa with 3,327 sales, followed by the Yaris on 3,276 sales and the Hilux with 3,262 units.
In addition to being the sales leader in the passenger and light commercial sections, it also topped the medium commercial vehicle segment with its workhorse Dyna.
“While our performance was remarkable, general market conditions remained tough with an overall negative sales trend continuing through October,” says Toyota President and CEO, Johan van Zyl. “The market was supported to quite a large extent by pent up demand for new models, both from Toyota and its competitors in the market. The easing of supply chain constraints allowed these orders to be filled. Further support in the market comes from aggressive marketing campaigns, so, for those in the market, now is a good time to buy!
“That said, the impact of increased interest rates and the relatively high cost of finance is inhibiting sales in the private sector and forcing corporate buyers to review vehicle replacement policies. The motor industry has moved from a period of sustained expansion to one of consolidation as year on year sales drop off from the high of 2006.
“October sales show a decline of 6,5% compared to last year while total sales year to date are now lagging by 3,3% with 578,623 sales for 2007 compared to the 598,242 for the same 10 month period in 2006.
He said sales of passenger vehicles were most seriously affected. Light commercial sales, although still ahead year on year, were now also showing a marked decline in sales. In contrast, the medium, heavy, and extra heavy vehicle sectors were still reflecting strong demand.
“Our forecast for total sales for this year is now 690,000 units, down from the total reported sales of 714,316 vehicles for 2006. Moving into 2008 we face the prospect of a soft market for at least the first six months of the year based on current data. If the upward spiral in interest rates continues we can expect substantial pressure on the vehicle market through 2008,” Van Zyl said.
Volkswagen and Toyota do battle every month in the passenger car section, with the Germans usually out-selling the Japanese, but Toyota maintains the high ground for overall sales, thanks to its wider range of commercial vehicles.
Figures released by NAAMSA (National Association of Automobile Manufacturers of SA) show a decline of 5.9% in new vehicle sales in October compared to the same month last year.
Volkswagen's marketing and sales director Mike Glendinning expects sales to be about 8% down this year – and even more, should there be another interest rate hike in December, as feared by many within the industry.
