Vehicle sales numbers, to be released tomorrow, are expected to show the car industry sold about a quarter more vehicles last year than in 2004, which was also a record year. Picture: Unknown

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Vehicle sales numbers produced by the National Association of Automobile Manufacturers of SA (Naamsa) are expected to show the car industry sold about a quarter more vehicles last year than in 2004, which was also a record year.

Lower interest rates and stable vehicle prices have seen consumers flocking to dealerships, resulting in supply shortages at times as suppliers struggle to keep up with strong demand.

Naamsa projected in its annual report, released last month, that sales would total about 610000 in 2005.

This marks an increase of 26% over 2004’s sales.

Sales by Naamsa members and nonmembers came to just more than 481500 in 2004.

Naamsa members account for more than 80% of total sales in SA

Tony Twine of Econometrix expects last year’s new car sales will be worth more than R125bn.

Exports are also expected to have hit a record high last year at close to 145000 units, with several new export programmes having kicked off and as current programmes are expanded.

This was up from 110500 the previous year and only about 68000 five years ago.

The increase in last year’s exports comes despite a decline in the first half of the year, when the stronger rand made exports less competitive.

Car makers face uncertainty, however, as government support for the industry is unclear.

The increasingly controversial Motor Industry Development Programme, which offers substantial financial benefits to car companies, is under review.

The outcome of the review, which began in about May last year, is expected by midyear.

Naamsa figures will be released by McCarthy at its annual press briefing on the state of the vehicle industry tomorrow.