New vehicle sales improve in June but still down on 2019

South Africa’s new vehicle sales continued to gain ground in June following the Coronavirus enforced lockdown’s downgrading from level 4 to 3.

Unexpectedly, the gain of nearly 30 000 units compared to May was still down on 2019’s figures with the National Association of Automobile Manufacturers of South Africa (NAAMSA) posting an overall decline of 30.7% from 45 953 to 31 867. The various segments remained in the red with new passenger vehicle sales dropping by 33.4% from 28 931 to 19 264, while light commercial sales recorded a drop of 29.7% from 14 497 to 10 189.

In a welcome turnaround though, the market for medium and heavy duty commercials were mixed with the former falling by 26.6% to settle at 611 units, while the latter, in the first of any uptake since the implementing of the lockdown at the end of March, increased by 6.5% to 1 803. Exports remained under pressure though with a drop of 38.7% from last year’s 30 667 to this year’s 18 796.

“The outlook on domestic demand for new vehicle continues to remain under severe pressure. Middle class disposable income was already under huge strain prior to the national lockdown resulting from COVID-19, which has significantly exacerbated the already weak macro-economic climate in the country,” NAAMSA said.

“The uncertainty of the anticipated impact and extent of COVID-19 cause planning constraints and the industry’s responsiveness to react and adapt to market changes remain imperative going forward. 2020 will be a difficult year for the industry with a significant projected decline in the new vehicle market and will be testing the renowned resilience of the industry”.

As indicated last month, no manufacturer’s individual model sales were released, therefore resulting in the absence of a best-sellers list.

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