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The Automotive Business Council says the positive new vehicle market performance in July, could not fuel a sustained rebound in the August sales performance.
The National Association of Automobile Manufacturers of South Africa (Naamsa) said aggregate domestic new vehicle sales in August 2024, at 43,588 units, reflected a decrease of 4,9%, from the vehicles sold in August 2023.
It said export sales decreased by 14,658 units, or 34,3% year-on-year in August 2024.
Overall, out of the total reported industry sales of 43,588 vehicles, an estimated 35,503 units, or 81,5%, represented dealer sales, an estimated 12,4% represented sales to the vehicle rental industry, 3,3% to government, and 2,8% to industry corporate fleets.
Naamsa added that a 13-month high Rand exchange rate, a three-year low 4,6% consumer inflation rate, decreasing fuel prices, the potential end to loadshedding as well as definite prospects of lower interest rates before year-end all enhanced consumer sentiment during the month.
There is recognition that with interest rates at a 15-year high, two potential rate cuts before the end of the year, reducing the cost of borrowing, would not materially improve vehicle affordability challenges and household debts over the short term, but it would signal a positive shift to stimulate economic activities.
Since the downward slope in new vehicle sales commenced in August 2023, expectations remain that the new vehicle market will reflect an improved performance for the balance of the year due to the 2023 lower base-month effect comparisons.
