Yesterday it was revealed that South Africa’s new vehicle sales fell by 25.9 percent year-on-year in July. It was also reported that the automotive industry, one of the biggest in the country’s manufacturing sector has been in decline for more than two years.
The National Association of Automobile Manufacturers (NAAMSA) said total new sales dropped to 34,503 units last month compared with 46,547 in the same month last year.
“The trading environment during July, 2009 had remained fundamentally weak with all sectors of the South African automotive industry continuing to experience severe sustainability challenges,” NAAMSA said in a statement.
“Improvement in the automotive industry’s domestic operating environment would depend on a revival in consumer spending on the back of lower interest rates, as well as on stimulatory government expenditure.”
In other reports we find that some of the major banks expect vehicle sales to start the recovery by next year. Wesbank has found that confidence has stabilised and that the used market is strong. Both Wesbank and ABSA have seen an increase in applications for credit, but the real uptick in the motor industry is only expected n the first quarter of 2010.
But how many vehicles do we have in South Africa, and what is our vehicle population?