Photo by: Duane Daws
Consumers should brace themselves for a sharp increase in new-vehicle prices.
Rand weakness would probably see new-vehicle prices increase by between 12% and 15% – or more – in 2016, said the National Association of Automobile Manufacturers of South Africa (Naamsa) in its first quarter business review, published on Wednesday.
This jump could see a new car, priced at R200 000 on January 1, increase to R230 000 by December 31.
Naamsa said new-vehicle price increases, as well as the possibility of further interest rate hikes, would “combine to further pressurise consumers and businesses at a time of rising retrenchments across a number of sectors”.
In light of this, as well as gloomy macroeconomic conditions, Naamsa had trimmed its forecast on domestic new-vehicle sales for the year to 555 000 units, down from the 564 500 units the association had projected in March, and the 622 500-unit sales forecast in October last year.
The new-passenger-car segment was expected to show the sharpest decline, to 367 000 units, down from last year’s 412 670 units.
In contrast, export sales were expected to show strong growth in 2016, increasing to 376 000 units, up from the 333 802 units exported in 2015, reported Naamsa.
This was expected to boost new-vehicle production in South Africa to 635 500 units in 2016, up from 615 658 units in 2015.
Naamsa indicated that exports to Europe, North America, Asia, Australasia and South America had improved last year. However, exports from South Africa to Africa had declined by 31.1%, to 42 594 units.