Vehicle sales started the new year on a subdued note, registering single-digit growth in new passenger car and commercial vehicle sales last month.

Analysts had expected sales to taper off this year, given last year's high base. The 2012 projections translate into a conservative 7.5% increase in domestic sales volumes against a 15.9% jump last year, when 571425 vehicles were sold.

Nedbank's economics unit said rising inflation and weak consumer confidence would slow sales.

Standard Bank said sales would continue to rise but slowly this year, in line with the weak local economy.

"With the tepid increase in credit uptake and rising unemployment, we are likely to see growth rates in total vehicle sales remain subdued," it said.

Absa Capital projects 5% growth this year.

New vehicle sales rose 7% in January compared with the corresponding period last year, the National Association of Automobile Manufacturers said.

Vehicle sales improved by 3144 units to 48251 from 45107 in January last year.

New passenger car sales rose 7.5% to 35488 from 32963 last year, lifted by car-rental companies, which accounted for 17% of the total new passenger car market.

Total commercial vehicle sales were up 2.1% to 12394 as against 12144 a year earlier.

Exports of locally produced motor vehicles rose 2.6% to 10445 compared with 10185 last year.

"The direction of the global economy remained uncertain and international markets were characterised by volatility and turbulence.

"This could affect export sales," the motor industry association said.