Exports continue to come to the rescue of South Africa’s vehicle industry after December sales fell to their lowest level in six years.
Only 41 639 vehicles were sold in South Africa in December‚ 15.3% lower than a year earlier.
The figure dragged the total sales figure for 2016 down to 547 442‚ the lowest annual total since 2010.
Sales were down across the board: passenger vehicles by 12.4%‚ light commercials by 8.9%‚ medium commercials by 18.7% and heavy commercials by 7.4%.
Exports were up 28.4% year on year in December‚ and for 2016 as a whole they increased by 4.4% to 348 512 units.
The National Association of Automobile Manufacturers (NAAMSA) said vehicle prices rose by a “weighted average” of 14% in 2016.
It attributed the sales plunge to high inflation‚ higher interest rates‚ weak growth in household income and low confidence.
Nedbank economists Isaac Matshego and Dennis Dykes said on Monday they expected the vehicle market to recover slowly in 2017.
“The first months of the year‚ however‚ will continue to reflect subdued sales as household income and confidence remain weak‚” they said.
“In the second half of the year‚ easing inflation and probable interest rate cuts will support consumer finances somewhat.
“The commercial market will continue to be depressed by weak fixed investment trends.”
NAAMSA projects annual domestic sales to recover to 561‚000 vehicles in 2017‚ with production rising by 6% to 641‚000 vehicles. — TMG Digital/The Times
Buoyant exports save SA vehicle makers from a very rough road in 2016
Exports continue to come to the rescue of South Africa’s vehicle industry after December sales fell to their lowest level in six years.
Only 41 639 vehicles were sold in South Africa in December‚ 15.3% lower than a year earlier.
The figure dragged the total sales figure for 2016 down to 547 442‚ the lowest annual total since 2010.
Sales were down across the board: passenger vehicles by 12.4%‚ light commercials by 8.9%‚ medium commercials by 18.7% and heavy commercials by 7.4%.
Exports were up 28.4% year on year in December‚ and for 2016 as a whole they increased by 4.4% to 348 512 units.
The National Association of Automobile Manufacturers (NAAMSA) said vehicle prices rose by a “weighted average” of 14% in 2016.
It attributed the sales plunge to high inflation‚ higher interest rates‚ weak growth in household income and low confidence.
Nedbank economists Isaac Matshego and Dennis Dykes said on Monday they expected the vehicle market to recover slowly in 2017.
“The first months of the year‚ however‚ will continue to reflect subdued sales as household income and confidence remain weak‚” they said.
“In the second half of the year‚ easing inflation and probable interest rate cuts will support consumer finances somewhat.
“The commercial market will continue to be depressed by weak fixed investment trends.”
NAAMSA projects annual domestic sales to recover to 561‚000 vehicles in 2017‚ with production rising by 6% to 641‚000 vehicles. — TMG Digital/The Times
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