As could be expected during the level 5 Covid-19 lockdown, new-vehicle sales and exports numbered almost zero in April.

With dealerships closed, businesses forced to work remotely and consumers stuck at home, traffic was at an all-time low, never mind sales, notes vehicle and asset finance company WesBank.

Under these conditions, the new-vehicle market recorded total sales of 574 units, down 98.4% compared with April last year.

Of that, 105 units were passenger cars, 318 light commercial vehicles and 151 trucks and buses.

Year-to-date total industry sales are down 31.2%.

April export sales reached 901 units, down from 32 829 units last year.

“In this unprecedented time, the motor industry is experiencing unchartered conditions and grappling with the solutions to address it,” says WesBank marketing and communication head Lebogang Gaoaketse.

“The global consequences of this pandemic will be immense for some time to come, from the economic impacts, to the way corporations work and the manner in which consumers behave. How the motor industry adapts now will define just how drastic the changes will be, but one of the few certainties from this crisis is that the industry will be different.

 “While government’s risk-adjusted and phased approach to unlocking economic activity is broadly supported, the motor industry will be looking to start operations sooner rather than later,” adds Gaoaketse. 

“The industry’s significant 6.9% contribution to gross domestic product means that many jobs are potentially impacted, across manufacturing and retail, as is foreign currency revenue from exports.”

Manufacturers will be looking for renewed consumer demand before returning to full production capacity, notes Gaoaketse.

However, this fine balancing act will rely on dealerships reopening their doors. 

Numerous factors to assist with a slow resumption of activity are apparent.

“The extremely low interest rate environment, thanks to a 2% cut over the past month, will help stimulate general economic activity, not least vehicle sales,” says Gaoaketse. 

“Indebted consumers will also be gaining some relief as a result. Significantly lower fuel prices will also contribute to household budgets, which – in some cases – will also be benefiting from work-from-home opportunities.”

Gaoaketse, though, does not expect any form of normality to return to the market soon. 

“There are simply too many unknowns, from both a pandemic and economic perspective.

“We should expect consumers to be slow in their return to the car market as they adapt to social distancing measures and remain cautious about their own budgets given the current uncertainty.”