Car Sales Decline As 2016 Draws To a Close-December 2024-www.zzdcar.com

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Car Sales Decline As 2016 Draws To a Close

Car Sales Decline As 2016 Draws To a Close-December 2024

2023-12-14 EST 02:30:44

The latest sales data fromthe National Association of Automobile Manufacturers of South Africa (Naamsa) show that the decline in new vehicle sales continued in November 2016

The new car sales slumpcontinues as a total of46413 vehicles were sold last month, resulting in a year-on-year decline of 9.6%. WesBank’s forecast of a 12% decline for 2016 is coming close as new vehicle salesare now down 11% compared to 2015. The only positive note from this past month's sales is thatlocally manufactured vehicles continue to top sales charts. Year-to-date sales indicate that the most popular vehicles are volume sellers from mainstream brands, while the five top-selling vehicles for the year are all built in South Africa.

The bakkie market continues to do well, with a year-on-year growth of 1%, which is excellent considering tough trading conditions and a declining new vehicle market. It is claimed that this positive result is due to new models such as Toyota Hilux and facelifted Isuzu KB, for example.

There have also been aggressive pricing strategies as well as sales incentives to entice buyers. However, the rest of the market is not doing well. Demand for new vehicles shrank 4% compared with November 2015 if you measure the volume of finance applications received. To put it simply, this can be attributed to poor affordability as theaverage new vehicle financed in November cost R293500 – a year-on-year increase of 12% – and sales volumes for premium brands have declined noticeably.

“Consumers continue to battle with affordability in the new market. This is most evident in the premium segments, where sales have fallen markedly,” says Simphiwe Nghona, CEO of Motor Retail at WesBank. “The majority of these premium models are imported and have been heavily impacted by the poor performance of the Rand. These customers are either downgrading and buying more affordable models from mainstream brands, or moving to the used market. There are many marketing incentives and finance assistance offers from dealers and manufacturers at the moment.

“Consumers should consider these and take the best deal, rather than looking for a specific car,” he added.