http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.10
R/$ = 10.50Change: 0.05
Au 1294.90 $/ozChange: -0.67
Pt 1407.50 $/ozChange: -21.00
 
 
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
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements 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)
WesBank|Chris De Kock
wesbank|chris-de-kock
© 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
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of 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 steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
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