THURSDAY, 11.30AM
NEW car sales in May crashed 21% to 19 375 units against May 1996 sales as the effects of high interest rates and a slowdown in the economy began to show.
Latest figures from the National Association of Automobile Manufacturers of SA show new car sales for the five months to May fell 3,3% to about 102 000 units against the same period last year, negating the 14% sales growth seen in the first quarter.
Particularly badly hit were the medium car segment, with an 18,4% decline against last May to 30 714 units, and the commercial vehicle market, where January to May sales plunged 13,5% to a few more than 52 000 vehicles. Minibus and pick-up sales from January to May fell nearly 15% to 46 909 units, while truck sales fell 14% to 2 900 units.
The slowdown in commercial vehicle sales suggests a drop in spending on fixed investment, while the weak medium passenger car segment was probably a result of new tax structures for company cars.