August new-vehicle sales 4.9% lower as exports nosedive by 34.3%
August’s negative new-vehicle sales numbers dashed any hope of a sustained upward trend in the market following July’s 1.5% increase.
Total new-vehicle sales in August dropped by 4.9%, to 43 558 units, compared with the same month last year.
The new-passenger-car market reached 30 022 units in August – a slight gain of 3.1% when compared with August last year.
Sales of new bakkies, vans, small trucks and minibus taxis – light commercial vehicles – were down 21.5%, to 10 709 units.
August medium-truck sales were up by 8.1%, reaching 748 units, while heavy-truck and bus sales contracted by 11.4%, to 2 109 units.
Last month’s new-vehicle export sales, at 28 073 units, plummeted by 34.3% compared with the same month last year.
“The [sales] decline [in August] is disappointing, especially considering the July sales results and improving consumer sentiment in the country,” says National Automobile Dealers Association (NADA) chairperson Brandon Cohen.
Looking ahead, however, he is optimistic about the potential for an interest rate cut to stimulate the market.
“A reduction in interest rates could significantly benefit the South African retail motor industry and the broader economy.”
With inflation falling to 4.6% in August and further improvements anticipated, Cohen believes that “a rate cut seems imminent when the Reserve Bank’s Monetary Policy Committee meets later this month”.
He says that while interest rate changes typically take three to six months to impact consumer purchasing patterns, current pent-up demand may lead to a quicker response in the local market.
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