http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.61Change: -0.22
R/$ = 12.20Change: 0.06
Au 1193.31 $/ozChange: 2.30
Pt 1112.50 $/ozChange: 6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 13, 2009

Vehicle sales confidence drops further

Back
Wesbank executive head of sales and marketing Chris de Kock discusses the outlook for vehicle sales in South Africa in 2009 (Videographer: Nicholas Boyd; Editing: Darlene Creamer)
 
 
 
Equipment
Equipment
equipment
© Reuse this



Credit availability among consumers and corporates remained one of the biggest hindrances to the growth of the vehicle sales market, Wesbank executive head of sales and marketing Chris de Kock said on Wednesday.

Speaking at the release of Wesbank’s quarterly vehicle sales confidence index (WVSCI), De Kock noted that confidence levels had dropped further to 4,2 in the quarter ended April, representing an 18% decline year-on-year.

The WVSCI had declined from 5,1 in April 2008, and from an already low level of 4,4 in the previous quarter, ended January 2009.

About 90% of respondents had indicated that the market was not active during the quarter.

Consumers’ decision to buy new vehicles was mainly influenced by credit factors and, to a lesser extent, mindset factors, highlighted Wesbank.

The vehicle financier said that a higher percentage of the population now had adverse credit records as a result of the volatility in the global economy, making it more difficult for them to access financing.

Further, many consumers still had a very high debt-to-income ratio, which affected their ability to afford new vehicles.

Consumers’ decision to buy new vehicles was also being influenced by higher new vehicle pricing, as well as uncertainty about the employment outlook.

However, the vehicle financier expected the 4,2 level to be the lowest level the WVSCI would reach in the current downward cycle, but De Kock conceded that it was difficult to forecast what might happen in light of the volatility in global economic conditions.

Nevertheless, there were some signs that conditions were starting to normalise, he said.

De Kock noted that credit availability would start to improve, as customers were deleveraging and paying off their debts to reach more manageable levels.

Further consolidation by dealers, and by original equipment manufacturers, would also start to benefit the industry, while the used car market would continue to support the industry.

De Kock expected the remainder of this year to be tough for dealers, but said that dealers were expecting to start seeing an improvement in conditions in the last quarter of the year and early 2010.

About 20% of respondents to the WVSCI had expected conditions to start improving in the next three months, while 63% were only expecting to see an improvement in the first quarter of 2010.

However, De Kock noted that the June WVSCI could show positive growth in confidence levels for the first time in a year.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Passenger Vehicles News
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
With new equipment orders stalling and the Russian market still in a slump, Barloworld found its cheer for the six months ended March 31 from a turnaround in its Iberian business and healthy equipment parts and service sales. The equipment, automotive and logistics...
To “do nothing” in response to the rise of the Nigerian automotive industry would be “hugely problematic”, says B&M Analysts MD Douglas Comrie. He says a rival assembly industry may diminish South Africa to “an island”, selling vehicles to its 50-million-plus...
Article contains comments
More
 
 
Latest News
Department of Energy's Deputy Director General in charge of nuclear, Zizamele Mbambo
Updated 4 hours ago The Department of Energy (DoE) told Parliament on Tuesday that technical preparations are at an advanced stage and the government is ready to move full steam ahead; but it kept details of how the nuclear programme would be financed firmly under wraps. “We are still...
WNA director-general Agneta Rising
Updated 4 hours ago In the next two decades nuclear energy’s share of the world’s power generation mix is projected to increase by several percentage points from 11% currently, as countries strive to meet growing demand by deploying technologies that do not exacerbate global warming....
Updated 4 hours ago Notwithstanding its recent downgrade to junk status, State-owned electricity utility Eskom is still planning to raise a whopping R66-billion in debt funding during 2015/16 to cover operational and capital expenditure (capex) shortfalls that will arise even after a...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
The African Development Bank (AfDB) has been an implementing agency for the Global Environment Facility (GEF) since 2008. The relatively young portfolio has 28 projects over 30 countries on the continent according to the 2014 AfDB and GEF annual report released...
PAUL SPEAR Training and development should be an integral and proportionate part of the long-term strategy of all companies, regardless of their size
Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96