‘Dismal’ rand takes its toll

2015-09-15 06:00
PHOTO: sourced

Passenger car sales declined 7.8% year-on-year in August.

PHOTO: sourced Passenger car sales declined 7.8% year-on-year in August.

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THE decline in economic growth, combined with an interest rate hike, has negatively affected South Africa’s new vehicle sales, reports the National Association of Automobile Manufacturers of South Africa (Naamsa).

Sales of new vehicles during August declined 8.2% (year-on-year). This follows the six percent decrease recorded in July 2015.

A total of 51 055 new vehicles sold in August, compared to 55 610 in the same month in 2014. Passenger car sales declined 7.8% year-on-year, with sales of 34 885. Light commercial vehicle (LCV) sales for the same period also declined 7.8%. Sales are down for all segments - dealer, rental, and government.

Simphiwe Nghona, CEO of WesBank’s motor division said: “Consumers and business have been under pressure all year, but July’s interest rate hike and the rand’s dismal performance this past month have taken a toll on the new vehicle market.

“New vehicle sales are regarded as a leading indicator for the country’s GDP. Looking at the monthly sales, which continues to trend downwards, it could be an ominous sign of things to come.”

- Wheels24

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