https://www.engineeringnews.co.za

New vehicles sales to end 2014 flat, contraction expected in 2015

11th December 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

Font size: - +

The new vehicle market in South Africa will probably end the year flat compared with 2013, says Standard Bank Vehicle and Asset Finance personal markets head Nicholas Nkosi.

The biggest impact on this year’s sales comes from a weaker rand, which continues to push up new vehicle prices, he adds.

“Despite this, sales were surprisingly resilient.”

This year also saw a strong return of the used car market, on the back of an increase in new car prices.

“People are looking for good deals; for cars with all the bells and whistles.”

Nkosi expects both trends to continue into 2015.

He warns that consumers have to brace themselves for more price increases, especially in the light of the rand’s sudden drop towards the end 2014.

This decline will further aid the used car market in the new year, assisted by a growing acceptance of used vehicles in South Africa.

Nkosi also expects consumers to continue stretching their repayment terms in 2015, as has been the case in 2014.

He believes South African buyers will remain under pressure in 2015, despite the recent drop in the petrol price, as inflation and increasing electricity prices will take their toll on household income.

Good news in 2015 will flow largely from vehicle exports continuing their upward curve.

“Exports have performed really well in 2014, and we expect this trend to continue,” says Nkosi.

However, he warns that strikes and load shedding may see South Africa become an increasingly uncompetitive production base compared with major global assembly sites, such as India.

Looking to 2015, Nkosi expects the new vehicle market to contract compared with 2014. While passenger car sales will be down, the truck market may end 2015 flat on 2014.

“The key drivers in 2015 will be the exchange rate putting pressure on new car prices, and general inflation and electricity price hikes placing the consumer under further strain.”

Edited by Creamer Media Reporter

Comments

Showroom

Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.075 0.129s - 158pq - 2rq
Subscribe Now