And it believes new vehicle sales will also show a stronger performance next year after this year’s poor performance relative to previous years. 2013 will probably see sales of 657 219, up 5.3% over last year.
But next year, sales are forecast to increase to 711 594, or by 83% before slowing to 7.4% in 2015, the study – commissioned by the Road Accident Fund – says.
It says passenger car sales, that are particularly sensitive to changes in households’ real disposable income, interest rate changes, credit extension and the operational cost of vehicles, are expected to slow from 11.3% in 2012 to 5.1% in 2013 on the back of a “deceleration in income and credit growth, an increase in cost factors and a maturing vehicle-replacement cycle.
Passenger car sales make up about 70% of all vehicle sales.