New and used car prices have declined by a total of 3,3% in the past three years, Business Report wrote on Thursday.
Citing the annual report of the National Association of Automobile Manufacturers of South Africa (Naamsa), it said the prices of new and used vehicles dropped by 1,2% in 2004 and by 1,6% last year.
They were projected to decline by 0,5% this year.
In addition, the report says the vehicle inflation index, which records new and used-vehicle prices, has risen less than the consumer price index for nine of the 12 years between 1995 and 2006.
Naamsa also revealed that the motor industry’s negative trade balance widened last year to R27-billion, from R18,8-billion in 2004 and R9,1-billion in 2003.
Motor industry imports last year totalled R72-billion and exports stood at R45-billion.
The report said this was mainly due to the strong rand, coupled with record growth in domestic new vehicle sales and the buoyant economy. — Sapa