Johannesburg - South Africa’s new vehicle market kicked the year off on a sombre note, with January’s sales taking a 7.4 percent plunge versus the same month last year, from 45 772 units to 42 374.
Passenger vehicle sales declined by 10.8 percent, year-on-year, according to Naamsa, while light commercial sales remained flat and the medium commercial market actually showed some decent growth at 24.6 percent.
This rocky start to the domestic sales year comes as no surprise, according to WesBank’s sales and marketing head Ghana Msibi.
“We expect the first half to be slow given the increased pressure on household budgets as interest rates slowly increase and, especially, the political uncertainty towards the May elections.
“We have seen steady increases in deal duration, which continues to impact new vehicle sales as consumers hold onto their cars for over 12% longer than they did in September 2017,” Msibi added.