Johannesburg - South Africa’s new vehicle sales took another year-on-year tumble in February, according to Naamsa, with sales for the month totalling 43 251, which is 6.5 percent down on the same month in 2018.
The slowdown was most apparent in the passenger vehicle segment, which saw sales declining by 13.3 percent year on year, while light commercial vehicle sales increased by 7.1 percent. Also on the upside, exports grew by 22.5 percent versus February last year.
WesBank’s Motor division head Ghana Msibi said that load-shedding played a definite part in the local sales slowdown for the month.
“While we expect first half sales to be slow, the market was no doubt rattled by the week-long impact of load-shedding at the beginning of the month, which impacted consumer and business confidence,” Msibi said.
“Reassuringly, however, February sales were up on January despite fewer selling days.”
However, household budgets remain under pressure, Msibi added, and affordability remains key, as evidenced by extended contract periods, increasing numbers of balloon payment options within finance contracts and a continued shift form new to used.
Naamsa believes that new vehicle market could see some modest growth in the second half of the year, following the elections.
“Post-election policy reforms and governments’ commitment to revitalise the South African economy with the aim of achieving a substantially higher economic growth rate should translate into improved domestic sales numbers during the second half of 2019,” Naamsa said.
TOP 50 VEHICLE SALES: FEBRUARY 2019
|Volkswagen Polo Vivo||2692|
|Isuzu D-Max & KB||1186|
|Nissan NP300 Hardbody||922|
|Hyundai Grand i10||901|
|Toyota Corolla Quest||715|
|Volkswagen Polo Sedan||431|
|BMW 3 Series||297|
|Hyundai H100 Bakkie||297|
|Mahindra Scorpio Pik-Up||226|
|Land Cruiser PU||224|
|Audi A3 Sportback||215|
|Nissan Micra 5||182|