“Current strain on car sales not likely to change materially in the short to medium term” says Standard Bank

“Overall new vehicle sales continue to show strain with a 9.1% year on year decline. New passenger vehicles sales also continue on a downward trend with a 13.1% year on year decline, mostly driven by pressure on consumer affordability and above inflation car prices. Current strain on car sales not likely to change materially in the short to medium term”

General Comments on April 2016 NAAMSA sales:

• The month of April 2016 showed a decline in sales of 15.0% compared to March 2016.
• Month on month passenger vehicles decreased by 14.8%, April 2016 compared to March 2016.
• Year on Year monthly comparison shows a decline in overall sales of 9.2%
• Passenger vehicles declined by 13.1% year on year
• Year on year monthly comparison shows an increase in exports of 39.2%

General Comments on April 2016 Standard Bank VAF passenger vehicles:

• Used vehicles grew year on year by 1.0%, whilst new vehicles declined by 32.5% during the same period.
• The average contract term increased from 68.6 months to 69.1 months year on year.
• The average deal size decreased from R306 881 in April 2015 to R291 169 in April 2016, driven by the continued shift towards pre-owned/used cars.

Also view:

Weakeness in April new vehicle sales but resilience in light commercial vehicles 

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