New vehicle sales down

SA saw a 2.4 percent YoY drop in new vehicle sales, though Naamsa believes this will pick up

According to data from the trade and industry department, South Africa’s new vehicle sales fell 2.4 percent year-on-year in December, to 40,636 units. In addition, exports fell 7.1 percent, down to 17,374 units; this compared to the same period in the previous year.

Despite this, the National Association of Automobile Manufacturers (Naamsa) has said it forsees some modest improvement in domestic new vehicle sales this year, along with growth in vehicle exports and industry production numbers, as the country’s economy picks up.

Naamsa said in a statement:

“Several recent economic indicators support the view that the South African economy is performing better than anticipated despite low levels of business and consumer confidence. Barring a further credit rating downgrade, an improvement in economic growth from about 1 percent in 2017 to around 1.9 percent in 2018 remains possible, and this would lend support to new vehicle sales in the domestic market.”