Sales of new vehicles continue to decline

New vehicles sales are continuing to decline, the National Association of Automobile Manufacturers of South Africa (Naamsa) reported on Tuesday.

New vehicle sales fell by 12% to 46 248 units in February compared with the same month last year, Naamsa said.

”February is traditionally a difficult month as there are fewer selling days,” said Jacques Brent, vice-president, sales and marketing of the Ford Motor Company of Southern Africa.

”However, this was further compounded by the negative market sentiment brought about by the high interest rates and rising fuel costs.

”The year-over-year decline was also impacted by the fact that the industry was still buoyant in the first quarter of 2007 ahead of the eNaTIS [electronic National Transport Information System] introduction in April.”

Despite the market sentiment having turned negative, Ford Motor Company said it had enjoyed a relatively strong performance in February.

With 6 047 units sold, sales were up by 9,6% over January 2008 and just 6% down on the corresponding month of 2007.

Volkswagen South Africa sales and marketing director Mike Glendinning said the car manufacturer had sold 5 961 passenger cars in February.

Glendinning added: ”New car sales are under pressure from both steadily increasing interest rates, in circumstances where an all-time high level of household debt prevails, and from what has become a significant erosion of the real spending power of households as general inflation escalates steadily.

The weakening rand as well as the Eskom power crisis made the sharp decline taking place in new vehicle sales ”more understandable”. — Sapa

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories


Already a subscriber? Sign in here


Latest stories

DRC: The war that doesn’t say its name

In the Democratic Republic of the Congo conflict, as well as peacemaking, have become ends in themselves, while the fighting is carried forward by its own momentum

Relief: Government must guard SA’s poor against inflation’s assault

It could prove difficult for government to loosen its grip on the public purse, but economists say the current extraordinary circumstances require intervention

Jesus wants to emulate boyhood hero Henry after sealing Arsenal...

The Brazil international revealed he was a big Arsenal fan as a youngster, having been captivated by Henry during the France star's successful spell in north London.

The best booze and chocolate pairings

On World Chocolate Day on 7 July, experience chocolate like never before, paired with your favourite adult drink

press releases

Loading latest Press Releases…