Car sales push up sales in car insurance - 31 May 2010 17:47
The National Association of Automobile Manufactures of South Africa (NAAMSA) released statistics last month that indicate a 36-percent increase in passenger vehicle sales. In April 2009 sales were at 26,283, whereas April 2010 reported sales at 35,763.
More than just having an implication for the motor industry, the increase in sales will lead to an increase in insurance sales too. Comprehensive insurance is compulsory for all financed vehicles, and motor insurance makes up about 60 percent of total short-term insurance in South Africa.
An increase in demand for new vehicles is a good indication for determining an increase in insurance sales. The increase in sales indicate that the car market in South Africa is recovering after a downturn over the last few years. The increase in sales was seen predominantly in the passenger vehicles sector in the domestic market, which indicates that South Africans are beginning to spend on high-cost items again.
The sales have been felt by manufacturers across the board too, with Volkswagen, Toyota, BMW, Mercedes Benz and Lexus all increasing from between 10 and 59 percent. According to statistics, Audi saw a 59 percent increase to 319 sales between 2009 and 2010 during the same period. The stats indicate that all ranges of motor vehicles, from mid-range to luxury vehicles have experienced an increase in sales.
The National Association of Automobile Manufactures of South Africa (NAAMSA) released statistics last month that indicate a 36-percent increase in passenger vehicle sales. In April 2009 sales were at 26,283, whereas April 2010 reported sales at 35,763.
More than just having an implication for the motor industry, the increase in sales will lead to an increase in insurance sales too. Comprehensive insurance is compulsory for all financed vehicles, and motor insurance makes up about 60 percent of total short-term insurance in South Africa.
An increase in demand for new vehicles is a good indication for determining an increase in insurance sales. The increase in sales indicate that the car market in South Africa is recovering after a downturn over the last few years. The increase in sales was seen predominantly in the passenger vehicles sector in the domestic market, which indicates that South Africans are beginning to spend on high-cost items again.
The sales have been felt by manufacturers across the board too, with Volkswagen, Toyota, BMW, Mercedes Benz and Lexus all increasing from between 10 and 59 percent. According to statistics, Audi saw a 59 percent increase to 319 sales between 2009 and 2010 during the same period. The stats indicate that all ranges of motor vehicles, from mid-range to luxury vehicles have experienced an increase in sales.