JOHANNESBURG, Gauteng – South Africa’s new-vehicle sales grew by 4.1% in July 2017 to 46 719 units according to sales data from the National Association of Automobile Manufacturers of SA.
While industry sales were up marginally in June – 0.9% – the positive performance was good news for 2017’s sales data. Year-to-date total industry sales are now down by only 0.3%.
The most notable positive performance was among cars, WesBank says, such units representing two-thirds of total sales. Sales grew 6.2%, those through dealers rose by four percent over July 2016.
Growth of 10.6% was seen in sales to rental companies, those to the state by 152.5%, year-on-year.
WesBank’s.Rudolf Mahoney reported: “July’s sales performance can be attributed to positive changes in market fundamentals. We see this in our data – demand for new-vehicle finance was nine percent greater.”
Household debt had declined through the previous 24 months to 72%. This measures the percentage of income people use to service debt. There was a marginal rise in households disposable income and headline and new-vehicle price inflation declined.
‘GREAT NEWS – BARRING DISASTERS’
“Vehicle manufacturers have also taken advantage of the rand’s performance to pass value to customers – as shown by the number of attractive sales incentives,” Mahoney added. “Combined, these factors will improve vehicle sales and customers’ sentiment, helped by the 25 basis points drop in the interest rate.
“If there are no shock events on the local or global stage this is great news for the economy and new vehicle sales.”