Domestic sales of new light commercial vehicles and medium- and heavy-trucks in South Africa continued to decline significantly amid the COVID-19 pandemic, with overall vehicle sales in the country dropping by 29.6%. With the tourism sector still under strict lock down, there was virtually no contribution by the car rental industry to support the market as is normally the case this time of the year, notes the National Association of Automobile Manufacturers of South Africa year-over-year, according to the National Association of Automobile Manufacturers of South Africa (NAAMSA). Explore more about the Meaning of fleet Outsourcing? that is in great demand among African businesses.
Quick Facts and Important Data:
Total South African new-vehicle sales declined by 30.7% in June to 31 867 units, compared with the 45 953 vehicles sold in the same month last year.
The new-passenger-car market fell by 33.4% to 19 264 units.
Light commercial vehicle sales were at 11,123 units in July, marking a 19.7% decline from the 13,859 assets sold during the corresponding month last year.
Meanwhile, sales for medium- and heavy-truck segments in the industry also performed weaker at 698 units and 1,670 units, respectively, according to NAAMSA.
This reflected a 12.9% decline in the case of medium commercial vehicles, and, in the case of heavy trucks a decline of 13.2% when compared to the corresponding month last year. Explore more about the Top 3 Problems faced by Vehicle Fleet Owners?
Future expectations from the Market:
“Increases in deal size between 10% and 15% across new and used vehicles compared to June last year either indicates a stronger appetite for quality stock based on price inflation or an increase in the portion of the debt in every deal,” says Gaoaketse WesBank's new head of marketing.
“Market activity is expected to remain low for the remainder of the year as the uncertainties of the pandemic continue to bring pressure to bear, for consumers and business alike,” he adds.
“Household budgets were already under pressure before the lock down and, within an economy that is now expected to shrink 7.2%, many potential buyers will delay their purchase decisions.”
WesBank expects the used-car market to continue to show higher levels of demand, providing better levels of affordability. However, some analysts expect to see an increase in used-car values as a result.
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