Tough conditions will stretch replacement cycles
In life, change is the only constant.
CEO of Motus Retail and Rental, Corné Venter recently indicated that vehicle buying patterns started to change even before Covid-19 hit the world.
“The pandemic has meant that many people have no choice but to reduce the size of the car they buy. The future for many potential buyers seems insecure so they are not taking chances with big car repayments that are due monthly and have lowered their sights to more affordable small vehicles.”
The popularity of sedans has shrunken – hatchbacks then became popular and this is now followed by SUVs and crossovers – currently the fastest-growing segments in the industry.
“The big area of growth is in the co-called crossovers, which has grown from 15,8% of the car market in January last year to 18% last month,” explained Venter.
“Motus represent 27 brands through more than 300 dealerships countrywide and this spread of brands and models provides us with valuable feedback of what is happening in the market in terms of changing trends among consumers and we are able to adapt quickly to these changes,” he added.
Further to this, the entry and sub-small segment accounted for 46,8% of the total car market sales in January. It was slightly lower in February. VW Polo is a popular choice with Suzuki following in the sub-small segment.
Venter predicts tough trading conditions for 2021 with cautious consumers stretching replacement cycles.
Source: MotorPress
