/ 2 July 2008

Vehicle sales feel effect of interest rates

South African new vehicle sales decreased by 21,9% year-on-year to 39 062 units in June, the National Association of Automobile Manufacturers (Naamsa) said on Wednesday.

Naamsa said in a statement the market continued to show extreme weakness with high interest rates weighing on consumer spending in the new passenger car market.

Including sales from Associated Motor Holdings, total sales were 42 436 vehicles in June compared with 54 025 in the same month last year. — Reuters