Motoring News

NADA projects 10-15% growth for SA vehicle market in 2022

CAPE TOWN, South Africa – The SA National Automobile Dealers’ Association (NADA) is hoping for new vehicles sales growth of 10-15% through 2022 based on sales in January and positive trends in 2021,

It will, however, also depend on stock supply.

Alex Boavida, NADA’s vice-chairman, told The Corner in a communique: “We expect sales to return to pre-Covid numbers – 2021 proved much better than expected after 2020 with 22% growth.

“We were, however, still not back to the market levels of 2019, and lagged 14% (72 490) behind two years earlier.”

‘GLOBAL SHORTAGE”

Average growth of 16% across all categories in 2021 was “heartening” with extra-heavy commercials the best performer with sales up 24%. Car sales followed closely, up 23% (57 177).

“These were positive results in a year of great turmoil – Covid-19, riots, and social unrest – as well as interest rate and fuel price increases,” NADA told The Corner. ”The global shortage of automotive components also affected new-vehicle production through the past two years but a normalised stream of stock entering SA will bolster 2022 sales.

“This strong performance, despite adversity, underlines the resilience and determination to succeed in the SA auto industry. We’re grateful for continuing customers support – which, we believe, also indicates economic activity is moving in the right direction.

STATE AID HOPED FOR

“Rising interest rates and fuel prices will affect car sales more than commercials. The interest rate is predicted to be 1.5% in 2022, significant in a country in which people have more debt exposure than previous years and will add strain on consumers’ income.”

NADA is also hoping promised state aid should also help potential buyers.

Boavida added: “One trend is the increased introduction of electric vehicles. We also forecast intensified consumer education on the benefits of such vehicles as well as further emphasis on technology – each creating revenue streams for automakers and their as well as generating enhanced consumer-centric offerings quickly and efficiently.

”We will continue to educate customers through the media (such as Carman’s Corner) with strong emphasis placed on employment equity and other targets.”

NADA also promised to see dealers were not prejudiced by new laws and regulations.”

  • NADA is a constituent association of the Retail Motor Industry Organisation.

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