Validity of vehicle sales figures at risk
The future validity of newvehicle sales figures, an important economic indicator used by government and private sector forecasters alike, has been thrown into doubt by a fight over the refusal of Mercedes-Benz SA (MBSA) to share details of its monthly sales performance.
BMW SA has thrown down the gauntlet to its luxury German competitor by also withholding sales details.
February new-vehicle figures, released on Wednesday by the Department of Trade and Industry, contain only an aggregate BMW SA number, with no model breakdown.
Since November 2014, Mercedes-Benz has offered two aggregate figures, for cars and trucks. Other companies reveal sales numbers for every model, as well as where they are sold — through dealers, the government or rental companies.
Mercedes-Benz said on Wednesday its reporting policy was “agreed with the [department]” and in line with international standards set by the Daimler parent group.
But other companies said the department was failing to uphold a directive requiring companies to disclose full details and that they had asked the department to reissue it.
BMW SA spokesman Diederik Reitsma said it was patently unfair that one manufacturer could see all its competitors’ sales data, while withholding its own.
As a consequence, BMW SA would limit its reporting until MBSA returned to the fold.
However, a Mercedes spokesperson said: “We are not reconsidering our decision.”
An industry insider said other companies could follow BMW SA’s lead. “It would be a disaster,” he said.
Nico Vermeulen, director of the National Association of Automobile Manufacturers of SA, said 19 government departments — including the Treasury — used vehicle sales
figures for economic planning purposes. Standard Bank’s Nicholas Nkosi said: “Any further withdrawals would dilute the validity of the figures and have serious consequences for economic forecasting.”
February sales figures released on Wednesday by the department showed a 0.1% drop from a year earlier. Cars sales fell 4%, from 32,854 to 31,400 but light commercial vehicles, as well as medium and heavy trucks, all showed gains.
WesBank’s Rudolf Mahoney said sales to rental companies, as well as unexpectedly strong demand from government departments for commercial vehicles, had been major contributors. “It’s very reassuring that many of the government sales were of vehicles that can be used for service delivery.”
January-February car sales rose 0.3% from a year earlier, from 67,987 to 68,183; and sales of all new vehicles rose 1.8%, from 96,658 to 98,433.
Exports rose 0.2% in February from a year earlier, from 29,323 to 29,388, but are down 3% over the first two months.
With BMW SA returning gradually towards full production of its export-focused 3-Series sedan after a twomonth slowdown for plant refurbishment, most in the industry expect the gap to be closed soon.