Recessionary conditions in new-vehicle market intensify
The recession in the domestic new-vehicle market “accelerated significantly” during September, says the National Association of Automobile Manufacturers of South Africa (Naamsa).
Statistics released by the Department of Trade and Industry show that September new-vehicle sales declined by 14.3%, to 47 399 units, compared with the 55 303 new vehicles sold in September last year.
Naamsa says all the segments of the market showed double-digit or near-double-digit declines during September.
New-car sales in South Africa dropped by 14.4% to 31 957 units.
The car rental industry accounted for 19.9% of new cars sold during the month.
September sales of new bakkies, minibuses and vans, at 12 879 units, declined by 14.8%, while sales of medium trucks, at 783 units, dropped by 9%.
New heavy truck and bus sales declined by 10.8% to 1 780 units.
New-vehicle exports took a surprising knock during September, says Naamsa, shrinking by 6.5%, or 2 278 units,to 32 876 units, compared with the 35 154 vehicles exported in September last year.
The association expects, however, that new-vehicle exports will improve over the remainder of 2016.
It does not have the same positive outlook for the domestic market.
“Given the present difficult economic environment in South Africa . . . the short- to medium-term outlook remains unfavourable.
“Double-digit new-vehicle price increases, low levels of consumer and business confidence and relatively high interest rates will
continue to put pressure on sales, particularly in the new-car market.”
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