South African consumers paid on average 24% more for cars by the end of 2009 than they did at the beginning of 2008, said Ford Motor Company of Southern Africa marketing, sales and service vice-president Jacques Brent.
Speaking in Johannesburg, he said FMCSA estimated prices to increase by another 2% to 6% this year, although this might “be currency dependent”.
Should the rand move significantly against the dollar, Euro and yen, prices could shift more as a large portion of cars and parts were imported into South Africa.
Brent did not expect government's proposed carbon tax on vehicles to have a significant impact on car prices.
“There is not much clarity on this carbon dioxide tax yet, but the impact should not be astronomical. It will maybe add another 1% to prices.”
The proposed tax would impact cars heavy on fuel – and therefore emitting more carbon dioxide – the most.
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