Emissions tax impacts car prices, sales

2010-09-02 12:50

The increase in car prices resulting from the emissions tax, which came into effect on September 1, will average between 2% and 3%, Absa Vehicle and Asset Finance said.

Earlier, the National Association of Automobile Manufacturers of SA (Naamsa) released data for August 2010, showing that new car sales were at the higher end of expectations, assisted by a substantial buy ahead by consumers to avoid the new car emissions tax.

August 2010 new car sales, at 33 541 units, reflected an improvement of 11 128 cars or 49.6% compared with the 22 413 new cars sold by the industry during August last year.

Absa managing executive Sydney Soundy said the commercial bank had received 9.4% more applications in August than in July.

The number of vehicles Absa financed in August was the same as in July, however this was 54% higher when compared with August last year.

Soundy said the quality of customers applying for finance had remained at similar levels to those of the previous month.

Strike impact

He said the impact of the motor manufacturers’ strike on sales volumes might possibly be felt in three to six weeks as a result of the lag in impact on levels of dealer stocks.

“Manufacturers’ contingency planning (and ramped-up production plans) may also assist in keeping the impact low.”

He said it was unclear at this stage how labour actions involving tyre and component suppliers and the related motor retail industry would impact on sales.

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