http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 23, 2008

WesBank launches auto indicator

Back
 
Africa|WesBank|Africa|South Africa|National Association Of Automobile Manufacturers Of South Africa|Chris De Kock
Africa||Africa|||
africa-company|wesbank|africa|south-africa|national-association-of-automobile-manufacturers-of-south-africa|chris-de-kock
© 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
Public Enterprises Minister Lynne Brown
Public Enterprises Minister Lynne Brown has released details of the remuneration of the chairpersons and nonexecutive directors of the various State-owned company boards falling under her Ministry. The remuneration figures, which are attached, are based on figures...
Grindrod rail divisional CE James Holley
JSE-listed Grindrod’s rail division on Tuesday vowed to make rail operations more cost-effective in Africa, as Grindrod Locomotives unveiled its new, cost-effective fit-for-purpose shunting and short-haul locomotive. The new GS7, launched at Rovos Rail in Pretoria,...
The small business development department stood by the national government's position on e-tolls, while the e-toll advisory panel continued its work, Minister Lindiwe Zulu said on Tuesday. "We've got a national government position on that [e-tolls] but there is a...
More
 
 
Latest News
Updated 34 minutes ago Global crude steel output in September, at 134.4-million tonnes, was marginally lower than the 134.5-million tonnes produced in September 2013. According to the World Steel Association (worldsteel), China produced 67.5-million tonnes of crude steel in September,...
Updated 3 hours ago Stand a chance to win a CAT Phone.  Subscribe to Engineering News & Mining Weekly at a 30% discounted rate. The weekly print magazines will be posted to your preferred postal address. Also gain online access to: Project Browser - providing an overview of latest...
The Cape Town International Convention Centre (CTICC) has outperformed its targets over the past financial year and contributed R3.1-billion to the gross domestic product in the 2013/14 financial year. CTICC CEO Julie-May Ellingson said the convention centre had been...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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