Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Banner Left
Banner Right

South Africa’s Vehicle Market Shows Signs Of Stability

South Africa’s new vehicle market showed signs of stabilising in February, with overall vehicle sales having declined by 0.7 percent compared to the same month in 2019, according to Naamsa.

A total of 43 485 vehicles were sold in February, representing a year-on-year decline of 320 units, but the passenger car market actually showed some positive growth, gaining 7.6 percent versus the same month last year, while commercial vehicle sales declined by a worrying 17.7 percent. Thankfully it wasn’t all doom and gloom on the commercial front, with the medium and heavy vehicle markets (often a harbinger of economic activity) growing by 3,8% and 3,7% respectively.

However, South African vehicle exports were down by 8.4 percent year-on-year, although Naamsa expects this situation to improve during the course of 2020.

Meanwhile, the sluggish domestic car market continues to reflect South Africa’s deteriorating economic outlook, Naamsa said. While the relief for individual tax-payers that was announced at the 2020 Budget Speech is a positive step, the CO2 emissions tax increase and the lowering of the threshold on passenger cars, as well as the increase in tax on double-cab bakkies, is bad news as these tax hikes will lead to price increases.

However, SA’s overall economic condition is not going to do the market any favours this year, WesBank’s communications head Lebogang Gaoaketse said:

“While consumers were shown some relief in the budget in income tax terms, increases in toll fees and fuel levies will continue driving the total cost of ownership up, forcing consumers to be increasingly vigilant about their discretionary spend.

“Simply put: if there is an opportunity for consumers to defer vehicle purchases, we expect them to do so,” Gaoaketse added.

On the sales reporting front, it is unfortunate to note that BMW South Africa and Mercedes-Benz SA have announced that they will only be releasing sales information on a quarterly basis, in line with global directives. Naamsa, however, has provided estimates for the two brands in order to give South Africans a more accurate picture of how the market is performing.

Taking a glance at the sales charts, Toyota’s Hilux took top spot with 2895 sales in February, followed by Volkswagen’s Polo Vivo (2417) and Polo (2120).

– IOL Motoring

Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!

Latest News