Johannesburg - The South African motor industry should brace for another tough year, WesBank CEO Chris de Kock has warned.
Speaking at the 2020 Cars.co.za Consumer Awards at Kyalami on Thursday evening, De Kock predicted that the new vehicle market would shrink by 3.5 percent this year, with the total volume amounting to around 518 000 units. He added that both business and consumer confidence were likely to remain subdued for the foreseeable future.
This outlook is shared by Toyota SA’s CEO Andrew Kirby, who predicted an annual volume of 515 000 vehicles for 2020 at the recent State of the Motor Industry event.
WesBank’s De Kock added that the biggest decline this year, in percentage terms, would take place in the light commercial vehicle market, which he expects to shrink by 4.7 percent. This would be due to the sluggish business side of the economy, which should also see medium and commercial vehicle sales dropping by 2.5 percent and 4.3 percent respectively.
Passenger car sales are certainly not immune either, with WesBank expecting a 2.9 percent decline versus 2019.