NEW vehicle sales jumped 20, 8% last month, with the sector looking set to nick up robust increase this year in spite of higher lending rates, the National Association of Automobile Manufacturers (NAAMSA) said today. New vehicle sales rose to 56 554 last month from 30 933 in the same month previous year, it said.

Vehicle manufacture is the second largest industry in SA's manufacturing sector, which accounts for about 17% of the economy.

The rate of sales growth can taper off this year due to predictable increases in interest rates, but the industry is still on course for a third successive year of record sales, said NAAMSA in a statement.

"Despite expectations during the months ahead of some slowdown in the rate of growth, the industry remained on target to achieve record sales for the third year in succession," it said.