CAPE TOWN, South Africa – New vehicle sales through July 2020 were largely flat in July and were similar to those of the previous month. However, according to the SA National Automobile Dealers’ Association’s chairman Mark Dommisse “most worrying is that July was a very long trading month yet vehicle sales were still almost 30% down on 2019”.
He added: “July was a very difficult trading month and we don’t see a quick recovery from this new reality any time soon. We’re looking at a minimum of one or two years before a significant improvement.
“People are still under heavy pressure to meet monthly household expenses and therefore cautious when making big-ticket vehicle purchases and committing to large financial payments.”
BUT LOOKING POSITIVE…
He added: “While there is some reprieve through recent interest rate cuts rising fuel prices and general inflation will continue to pinch wallets.
“On the positive side many people will have resumed paying instalments in July. Considering the pressure they are under and that there is still an appetite for new cars a flat month from June to July was very encouraging.”
July car sales were slightly down from June (-125 units) but light commercial vehicle sales showed growth of 1392 units over June.
Of the total reported industry sales of 32 396 vehicles in July, an estimated 30 325 (93,6%) were dealer sales – clearly demonstrating the importance of South Africa’s dealer network contribution to the economy.
Sales to commercial, government, and rental sectors appear to still be largely in lockdown as fleet buyers watch budgets closely.