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2010 07

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South African auto sales continue slide in May

JOHANNESBURG, June 2 (Reuters) – South African new vehicle sales slid 32.9 percent year-on-year in May, an improvement on April when they dived a record 44 percent, partly due to extra public holidays during that month.

Total sales dropped to 28,972 units last month, the National Association of Automobile Manufacturers (NAAMSA) said on Tuesday, as consumers cut back on spending in the country’s first recession in nearly two decades.

Stripping out data from Associated Motor Holdings, which reports separately, sales fell 34.7 percent to 25,819 units.

NAAMSA said prospects for the rest of the year were poor, with a recovery dependent on a revival in consumer spending, spurred by interest rate cuts. ’2009 will represent an extremely difficult year for the entire South African automotive industry,’ it said in a statement.

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