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
1Toyota Hilux29962Volkswagen Polo Vivo26213Ford Ranger22174Volkswagen Polo 20765Nissan NP20017306Isuzu D-Max / KB17237Toyota Hi-Ace15208Nissan NP300 Hardbody11669Hyundai i2086310Ford EcoSport83911Toyota Fortuner81012Kia Picanto80013Renault Kwid76814Toyota Etios76215Hyundai Grand i1065416Suzuki Swift63517Toyota Corolla Quest60818Volkswagen Tiguan59519Toyota Rav458420Renault Sandero58121Datsun Go54822Ford Figo52323Toyota Avanza51824Nissan Almera46625BMW 3 Series45626Volkswagen Polo Sedan43627Toyota Yaris42528Hyundai Tucson35629Mazda CX-335430Mazda CX-535131Volkswagen Golf30832Kia Rio30033Nissan X-Trail29734Renault Duster28735Mahindra Scorpio Pik-Up28736Toyota Land Cruiser PU26337Ford Everest25838Volkswagen Amarok25239Ford Fiesta25740Suzuki Celerio25541Hyundai Creta25242Kia Sportage25043Renault Clio22944Mahindra KUV22345Hyundai H100 Bakkie21646Mazda221347Toyota Corolla21148Toyota CH-R19949Nissan Micra Active19850GWM Steed188