New-vehicle sales plummet 11.7% in March, extending months-long slide
New-vehicle sales plummeted by 11.7% in March, to 44 237 units, compared with the same month last year.
Sales for the first quarter of the year are now 5.3% below the same period last year.
Naamsa | The Automotive Business Council says the market is continuing the downward spiral that started eight months ago.
The negative trend is being fuelled by persistent cost pressures within the consumer environment, including high interest rates and rising fuel prices. However, March was also a shorter sales month than usual, owing to an early Easter, while it also coincided with school holidays.
Within the total market, new passenger-car sales declined by 15.9%, to 26 577 units.
Sales of new bakkies, small trucks, vans and minibuses dropped by 4.3%, to 14 870 units.
Medium-truck sales declined by 15.8%, to 726 units, and heavy-truck and bus sales dipped by 2.1%, to 2 064 units.
Export sales also recorded negative numbers, dropping by 27.1%, to 24 161 units.
“One can hope that April will bounce back and provide some level of correction against last year’s sales,” comments WesBank marketing and communication head Lebo Gaoaketse.
“Considering that the rate of finance applications per day was up against March last year, the levels of demand remain high.”
However, Gaoaketse notes that the broader economy remains a challenge for South African motorists.
“With interest rates unchanged once again, they remain high amidst generally high inflation. Fuel prices will increase again this week, continuing to place pressure on household budgets and their ability to service debt.”
WesBank also believes that the market will inevitably act cautiously as it eyes the outcome of the general elections in May.
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