Nelisiwe Baloyi, Head of Absa Vehicle and Asset Finance, says new vehicle sales are expected to remain under pressure in the next twelve months against the background of the latest developments regarding South Africa’s credit ratings and the eventual impact of these on the economy and consumer and business sector finances and confidence.
“However, vehicles sales are likely to find support in the demand for entry-level passenger cars, new model releases, manufacturer incentives and stable interest rates in the foreseeable future,” she adds. South Africa’s new vehicle sales have experience yet another month of growth rising by 7.2% year-on-year despite the continued difficult economic environment. New vehicle sales volumes of 49 754 units were reported by the National Association of Automobile Manufacturers of South Africa (Naamsa) in November 2017 with new passenger car sales increasing by a strong 16.4% year-on-year to 32 821 units. New commercial vehicle sales dropped by 6.9% year-on-year to 16 933 units in November, but increased by 7.8% month-on-month from October. Light commercial vehicle (LCV) sales (29.3% of total sales) contracted by 7.4% year-on-year to a level of 14 587 units in November, while rising by 9.1% month on month.