July knocks on vehicle sales can be weathered
According to Wesbank, the civil protests and a shortage of stock has impacted vehicles sales negatively in July.
“July brought the fragility of the motor industry back into stark focus,” said Lebogang Gaoaketse, head of marketing and communication at WesBank. “Not only did the month bring physical impacts, but the resulting consequences in business and consumer confidence will continue to challenge the industry’s recovery for months to come. Once again, the industry’s resilience is being put to the test.
“Rejuvenation of rental fleets, progress in the country’s vaccination roll-out programme and revitalisation of the economy in general will all contribute towards building the South African motor industry,” said Gaoaketse. “The industry needs to remain focused on delivery and the inevitable demand that will rise in the medium term.”
Although July sales recorded 1,7% growth year-on-year to 32 949 units according to the Automotive Business Council (Naamsa), the month declined 13,6% compared to June sales.
The passenger car segment grew 9,1% year-on-year to 20 575 units, but that was a far cry from the 24 497 units sold in June. The real effects of consumer confidence can be seen in the dealer channel sales, down 1,1% year-on-year and significantly worse off (-15,8%) than June.
Light commercial vehicle sales were down 8,1%. Dealer sales were also down 9,8% compared to June.
“While the country encountered yet another speed bump during July, there are many reasons to believe in the continued recovery of the market. Low interest rates, the return of adjusted level 3 lockdown regulations, and some improvement to civil stability will provide a good basis for the industry’s determination to once again shine through,” concluded Gaoaketse.
Source: WesBank
