http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.62Change: -0.02
R/$ = 12.48Change: -0.10
Au 1162.46 $/ozChange: -9.43
Pt 1051.00 $/ozChange: -10.20
 
 
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  
 
 
Jan 23, 2008

WesBank launches auto indicator

Back
 
 
 
 
 
 
Africa|Health|Africa
Africa|Health|Africa
africa-company|health|africa
© Reuse this Financial institution WesBank on Wednesday launched its first vehicles sales confidence indicator, which is aimed at measuring current and future market activity.

The indicator measured a level of activity of 5,6 in September last year, which was ‘inactive'. At December 2007, the three-month indicator was 5,4, but it was expected that it would rise to 6 and to 6,5 in the next six to 12 months, respectively.

The market was labelled as inactive for a number of reasons, 87% of respondents identified increased interest rates and the National Credit Act (NCA), and one in four respondents mentioned higher fuel prices.

Sales and marketing director Chris de Kock said that the level of activity on the showroom floor should start to plateau and then grow again toward the latter part of 2008. He added that dealers and dealer staff were more optimistic that the gear-up for 2010 would create increased demand for light delivery vehicles and heavy commercial vehicles.

He noted that the drop in vehicle sales seen last year had been off a very high base.

De Kock explained that the indicator was born out of a desire for consistent information about the "health" of the market.

The indicator presents confidence in vehicle sales as a measurable statistical score, and provides something different to the monthly National Association of Automobile Manufacturers of South Africa figures in that it allows for a forecast as opposed to purely historical figures.

WesBank teamed up with an independent research house to produce two sample surveys performed on 500 candidates drawn from vehicle sales people, dealer principals, dealer general managers, franchise directors and vehicle sales managers.

The sample was taken across the country and represents an even distribution of candidates from all manufacturers, brands and franchises. Participants responded to a series of market-related questions with answers on a scale of one to ten, ranging from highly inactive at the bottom to highly active at the top of the scale.

Tracking trends


In addition to the confidence indicator WesBank has identified key headline trends taken from its book, which, owing to the size of its customer base, could be deemed large enough to represent overall market activity.

WesBank said it had seen a significant growth in the emerging African market, with this particular demographic up 15% year-on-year in an otherwise declining buyers market.

De Kock noted that last year black buyers accounted for over 34% of the finance company's book, compared with 17% in 2004. Within the grouping, African female buyers in the 26 to 30-year age group were also found to be particularly active.

De Kock commented that the demographic had been a "very strong contributing factor to the growth of the industry".

WesBank also found that increasing numbers of customers were opting for longer finance contracts on their passenger vehicles, notably an increase in those extending the finance period longer than 60 months. In the fourth quarter of 2007, some 24,7% of customers elected the over 60-month finance period. This facility had not been available prior to the introduction of the NCA, and the majority of buyers, about 90% elected to finance over a 54-month period.

De Kock said that he did not expect this trend to continue, as the capital reduction was much slower causing the loan value to remain higher than the value of the vehicle for a far longer period, and thereby limiting the customer's ability's to replace the vehicle.

Another trend identified during last year was that more customers elected a fixed rate, rather than linked rate. A fixed rate allows customers to agree on an interest rate, at the time of signing the agreement, which remains the same regardless of fluctuations during the course of their repayments, while a linked rate changes with the prime interest rate.

Over 60% of customers chose the fixed-rate option from July to December last year, while December customers with the linked rate accounted for just less than 30%.

De Kock said that this trend was likely to stay the same for this year, and possibly drop off should interest rates drop off in 2008.
Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Updated 9 minutes ago All new office developments in South Africa should be legally required to offer end-of-trip facilities (EOTF) for cyclists and other nonmotorised transport (NMT) users to incentivise workers to use alternatives to road and rail commuter transport, delegates at the...
Updated 35 minutes ago While considered technically feasible, a recent government-sanctioned study by engineering consulting firm GIBB has suggested that a proposed bicycle-sharing schemes (BSS) in Johannesburg may prove to be financially unworkable, with income from the scheme unlikely to...
Updated 1 hour 13 minutes ago The South African government in 2012 collected R40.4-billion from the national fuel levy, said Stellenbosch University transport economics lecturer Johann van Rensburg at the South African Transport Conference on Tuesday. However, the fuel levy was increasingly...
More
 
 
Latest News
Updated 12 minutes ago All new office developments in South Africa should be legally required to offer end-of-trip facilities (EOTF) for cyclists and other nonmotorised transport (NMT) users to incentivise workers to use alternatives to road and rail commuter transport, delegates at the...
Updated 12 minutes ago Revising its initial April trading update for the first half of the 2015 financial year, aluminium manufacturer Hulamin on Tuesday said it now expected earnings to plunge by around 40% on the back of lower volumes, electricity supply curtailments, quality issues and...
LEDS 50
Updated 33 minutes ago South African defence company Saab Grintek Defence is receiving a lot of interest from around the world in the latest version of its armoured vehicle Land Electronics Defence System (LEDS) 50, the Mark (Mk) 2. "We've received a lot of requests for proposals," reports...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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