A pause in the interest rate hiking cycle in July led to an increase in motor trade sales for the month. (Dean Hutton/Bloomberg via Getty Images)
Motor trade sales increased by 2.6% in the three months ended July 2023 compared with the three months ended July 2022, data from Statistics South Africa showed on Thursday.
The positive contributors to the July increase were sales of accessories, which were up 8.6%, while new vehicle sales rose 6.5% and fuel sales were up 5.2%.
On a year-on-year basis, motor trade sales increased by 2% in July, following a 4.8% year-on-year rise in June.
Automotive Business Council (Naamsa) chief executive Mikel Mabasa said there had been a sigh of relief among new vehicle buyers after the South African Reserve Bank decided to pause its interest rate hiking cycle in July.
During that month, aggregate domestic new vehicle sales edged up by 1.3% to 43 389 units.
Stats SA conducts a monthly survey covering enterprises in the motor trade industry and the results are used to compile estimates of GDP and its components, which are, in turn, used in monitoring the state of the economy and formulation of economic policy.
The survey collects information from a sample of enterprises predominantly involved in motor trade, including vehicle dealers, filling stations and workshops, motor cycle dealers, spares and accessories, tyre dealers, electricians, radiator repairs, panel beaters and spray painters.