According to the National Automobile Dealers Association’s director, Gary McCraw, one of the reasons for the increase in year-on-year sales can be contributed to new models constantly being introduced into the market.
He said this is enhanced by the improved availability of the most popular vehicles offered by the various manufacturers.
McCraw highlighted that buyers also benefit from numerous sales assistance programmes.
“It is indeed pleasing to observe that the total market reached 46 810 units in June, representing a remarkable 14% increase compared to the same month last year. However, it is important to note that a year ago, the Toyota plant in Durban was incapacitated due to flood damage, which had an impact on overall sales volume.
“Nevertheless, witnessing continued growth in the current challenging economic environment is encouraging, given that vehicle buyers are facing affordability pressures, a depreciating rand that drives prices higher, low business confidence, and political instability. Fortunately, consumer inflation slowed to 6.8% in April, marking the lowest rate since May 2022. Additionally, the decreased frequency of power outages has provided a morale boost,” added McCraw.
Dealers accounted for 83.5% of sales in June, rental sales were 10% of the total and 13.4% of cars sold were passenger vehicles. Government sales represented 3.5% of the total, and sales to corporate fleets accounted for another 3%.
“Meanwhile, sales in the buoyant light commercial vehicle segment surged by 57.1%, with Toyota being the major contributor. Medium truck sales rose by 8.2%, and heavy trucks and buses reported a substantial increase of 19.6%,” said McCraw.
Despite these figures, the general sentiment remains negative. “If we can maintain the current rate of power outages, continue to experience a drop in inflation, and benefit from the recent relief in petrol prices, sentiment may gradually improve. This, in turn, could lead to increased dealer sales as more new models become available and, hopefully, sales assistance persists.”
Source: Ilana Salant
