South Africa's new vehicle sales reached an all-time peak for September, powered by fleet buying, setting the scene for the industry to record its highest full-year volume in 20 years, officials said on Monday.
The National Association of Automobile Manufacturers of South Africa (Naamsa) said in a statement that sales rose 22.7 percent year-on-year in September to 43,145 units - the highest level on record for the month of September.
It was also the second highest month on record since June 1984. Sales have risen due to a combination of the lowest interest rates in more than 20 years and gains in disposable income and wealth.
"Throughout the month, we noticed robust demand from the private fleet, government and car rental sectors," said Brand Pretorius, chairman of McCarthy Motor Holdings. "The industry is well on its way to achieving the highest sales total in 20 years."
Vehicle sales are one of the leading indicators of domestic economic growth in South Africa, and the motor sector is one of the country's largest industrial employers.
Analysts said the figures, coming on the heels of last week's data, which showed strong growth in money supply and credit demand, could prompt the central bank to exercise caution at next week's monetary policy committee meeting.
The bank in August unexpectedly cut its main repo rate by 50 basis points to 7.50 percent.
"These latest car sale numbers tie with other numbers ... which continue to point to very robust domestic demand conditions," said Adenaan Hardien, an economist at African Harvest.
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