Johannesburg - South Africa’s new vehicle market continues to sag, with July 2019 seeing a 3.7 percent year-on-year decline, to 47 856 units.
However, despite it being a strong month for rental sales, it was passenger cars that took the big hit, declining by 8.2 percent versus July last year, while light commercial vehicle sales actually grew by 2.9 percent. Furthermore, the medium commercial market saw a 14.9 percent improvement and the heavies grew by a substantial 21.4 percent.
There was also some good news on the export front, with sales increasing by 22.1 percent year-on-year.
More interest rate cuts needed
“While the small interest rate cut during July was warmly welcomed by industry and consumers alike, it may take some more incentive from the Reserve Bank to jump-start the economy and entice consumers back into the new vehicle market,” said WesBank’s Executive Head of Motor, Ghana Msibi.
Although WesBank has noted an increase in demand for vehicle finance, economic conditions remain extremely tough, Msibi added:
“Retrenchments across the board are hitting all sectors hard and the motor industry is feeling the effects of significantly reduced spending power. Consumers simply cannot afford to replace their vehicles, never mind enter the market for the first time.”
Naamsa said that while the lower interest rate, improving Purchasing Managers’ Index and increasing commercial vehicle sales are good signs that bode well for the rest of the year, “in a low growth environment other structural reforms that deal with underlying issues in the economy need to complement the lowering in the interest rate for sustained improvement in business and consumer confidence going forward.
“The turnaround anticipated for the second half of the year has not realised in the new vehicle market yet.”
50 TOP SELLING VEHICLES: JULY 2019
|2||Volkswagen Polo Vivo||2621|
|6||Isuzu D-Max / KB||1723|
|8||Nissan NP300 Hardbody||1166|
|15||Hyundai Grand i10||654|
|17||Toyota Corolla Quest||608|
|25||BMW 3 Series||456|
|26||Volkswagen Polo Sedan||436|
|35||Mahindra Scorpio Pik-Up||287|
|36||Toyota Land Cruiser PU||263|
|45||Hyundai H100 Bakkie||216|
|49||Nissan Micra Active||198|