Happy Christmas for carmakers

The healthy December sales boosted the total sales for 2010 to a level 30.6% above the market for 2009.

"The selling rate of new cars per day in December was higher than the selling rates per day achieved in the first seven months of the year," said Mike Glendinning, director of sales and marketing, Volkswagen Group South Africa.

He said Volkswagen sold 67 023 passenger cars in 2010 - growth of 34.3% over 2009 - which was 4% ahead of the total market year on year growth. With a 19.9% slice of the total passenger market, Volkswagen was again the top passenger seller.

Pent-up demand pushes sales

The new Polo Vivo proved to be the most popular passenger car in South Africa with 23 297 sales. The new Polo sold 16 006 units in 2010, ensuring that the Volkswagen Brand continues to dominate the affordable, entry level segment of the market, Glendinning said.

The new one-ton Ton Amarok double cab added further happiness to the VW stable by selling 814 units in November and December.

"Supported by ongoing pent-up replacement demand, new car sales were encouraged in 2010 by sound growth in household disposable income during the first three quarters of the year, low and declining levels of inflation, falling interest rates which declined to a 36 year low, an encouraging recovery in the net wealth of households, a sharp decline in debt servicing costs, a slow improvement in finance approvals from the banking sector and the strength of the currency," he said.

He said 2011 are showing clear signs of recovery, with inflation and interest rates likely to remain low improved business and consumer confidence, although he expected slower growth than 2009.