Johannesburg - After a modest return to growth in April, May 2019 saw the South African new vehicle market return to contraction, with the total volume of 40 506 units being 5.7 percent below the same month last year, while exports were down by 8.8 percent.
Passenger cars were dealt the softest blow on the domestic front, falling 1.4 percent year on year to 26 170 units, while sales of light commercial vehicles and minibuses declined by 13.0 percent. Medium commercial vehicles were actually up 0.3 percent while the heavies were down by a worrying 14.7 percent.
Consumers feel the pinch
“Household incomes remain under pressure,” said WesBank Executive Head Ghana Msibi.
“Consider that fuel price inflation year-on-year is 9.2%, while WesBank’s average deal size for new vehicles has increased more in line with official inflation at 4.8%. The difference in fuel price since January this year is as much as R2.69 for every litre of 93 unleaded, which gives a very real sense of how much further salaries have to go.”