Retail passenger vehicle labour rates high in Gauteng

Labour rates are the hourly rates quoted by dealers for work undertaken on a vehicle.

The report revealed that the most expensive passenger vehicle brand to have serviced anywhere in SA was Mini at an average of R602.27 per hour followed by Audi (average R583.62 per hour)‚ BMW (average R580.13 per hour) and Lexus (average R579.09 per hour).

The least expensive brand is Chana (average R 342.52 per hour)‚ followed by Mahindra (average R362.29 per hour) and Tata (average R385.30 per hour).

Paul De Vantier‚ CEO of RGT Smart‚ said the report provided significant insight into year-on-year increases of labour costs across brands as well as provincial regions.

"Retail labour cost increases amongst brands surveyed have increased on average by 4.1% year on year‚" said De Vantier.

RGT Smart is a market intelligence solutions provider to the automotive sector‚ which‚ in its report‚ revealed a number of findings about labour rates in the local passenger automotive industry across various brands‚ vehicle baskets‚ provinces and metros.

De Vantier said in the Gauteng region labour on a medium or large-sized vehicle is most expensive‚ while labour on a sub-small or entry level vehicle is least expensive. "Labour rates in the Western Cape are most expensive on a medium-size vehicle and least expensive on sub-one ton vehicles. Labour costs on medium-size vehicles seem to be the most expensive across most provinces."

He explained that these labour costs were determined by the dealerships themselves and were largely based on the dealership's cost and overhead structure and‚ naturally‚ supply and demand.

"The rates will all eventually be determined by how competitive the individual dealerships and manufacturers are‚" he said.