Dealers show resilience in tough new vehicle market

Of the 47,964 total industry sales last month, 66% went to the passenger vehicle segment which is down 2.2% year-on-year and is flat year-to-date according to data released by the National Association of Automobile Manufacturers of South Africa (Naamsa).

Light commercials, which contributed 29% of total sales, are down 5.8% year-on-year and 2.5% year-to-date. The commercial segment comprising buses, medium, heavy and extra-heavy vehicles made up the final 5%, and is up 16% year-on-year and 2.1% year-to-date.

Best-selling new vehicles in SA

26 Jul 2018

“Despite perpetual pressure on the economy this year with total industry sales remaining subdued, the dealer channel has been resilient showing 2.4% year-to-date growth.” said Ghana Msibi, WesBank’s executive head for sales and marketing.

“With four months remaining in 2018, WesBank’s forecast of 3% growth is still possible. However, if the deterioration of the rand to foreign currencies continues as we’ve seen in August, consumers could feel more of a pinch when buying new cars going forward.”

Rentals grew by 1.6% year-on-year in August, but remained 7.6% down when compared to the first eight months of last year which saw the highest rental sales ever recorded.