Last September 2007 a total of 36,833 new passenger cars were sold in South Africa but compared to the month of August there is a decline of 12.9 percent and similarly 12.9 percent down on September of 2006. The year-to-date, new car sales have declined by up to 7.9 percent below the obtained sales results from January to September last year.

Mike Glendinning, Volkswagen of South Africa Sales and Marketing Director said that Volkswagen was able to outsold Toyota to claim the title of passenger market leader.  He said, "With sales of 8 177 passenger units, Volkswagen of South Africa claimed a 22.2 per cent share of the market, fending off strong competition from the likes of Toyota, and our Eastern Cape rivals, General Motors and DaimlerChrysler. With sales of 1 033 luxury passenger units, the Audi Brand once again performed to expectations and further cemented its place in the premium segment. The Commercial Vehicle market has shown a decline on August 2007, but year-to-date growth continues to be positive on 2006."

Mr. Glendinning also explained that although it is true that the decline in the size of the new car market in September was sizeable as compared to August still there were three important issues that need to be addressed. He said, "Firstly, the market in August was significantly boosted by new model launches as well as a record volume of non-dealer sales. Secondly, the prolonged component industry strike could well have created shortages of product that constrained the market. Thirdly, September had two less selling days than August. The combination of these factors therefore appears to have caused the large fluctuation in the market between August and September."

Mr. Glendinning also explained that the market is under pressure due to a more constrained financial environment especially with interest rates increased by three percent since June last year not to mention having to face more stringent requirements imposed by the National Credit Act. Mr. Glendinning also said that if there would be another increase in the interest rate this October again this would significantly add pressure for new cars particularly with new vehicle pricing now growing at around 4.8 percent year-on-year.