You are here:


Interrupted and slow economic activity cause slow sales

06.05.2014

The Department of Trade & Industry has commented that the difficult economic environment and high number of public holidays during April, 2014 has led to decreased vehicle sales compared to the same period last year.

 New vehicle sales were at 46 013 units meaning a decline of 5 485 vehicles or 10.7 percent, compared with the 51 498 vehicles sold in April, 2013. All segments and categories had recorded year-on-year declines. The decline was felt particularly in the export market where decreased productivity meant a decline of 8 142 (32.6 percent) vehicles to just 16 801 units. From the middle of 2014, vehicle exports are expected to improve with the export of the new generation Mercedes-Benz C-Class.

Overall, total (disaggregated) reported Industry sales were at 46 013 vehicles.  Some 88.7 percent or 40 780 units represented dealer sales, 4.9 percent went to Industry corporate fleets, and 4.2 percent represented sales to the vehicle rental Industry with the remaining 2.2 percent to government.

 The new passenger car market performed the best as it saw the least decline in sales at 30 848 (3 648 units or 10.6 percent down). The light commercial vehicle segment saw a fall of 1 662 units (11.5 percent) as sales totalled 12 796 units.

 The rest of the year is said to be affected by subdued economic growth, exchange rate induced above inflation new vehicle price increases and further upward pressure on interest rates.

 As consumers fall into more indebtedness, having to pay for escalating energy and transport costs, especially in Gauteng with e-tolling, we will continue to see negative sales figures.  Increased demand would fall on to the used car segment while less demand is seen for new vehicles

 NAAMSA now anticipate that  the  domestic  market  in 2014  was  likely to  register  a decline,  in aggregate  terms,  of around 3.5 percent compared to 2013.

Article written by Autodealer
06.05.2014
Comments
You have an opportunity to be the first by writing a comment about this article. Ask a question or share your opinion!
 
Notify me via email when someone comments or replies
- Enter security code