Signs of improvement in new vehicle sales

“New passenger vehicles showed signs of improvement with a growth of 2.1% year on year, despite reduced contribution from the rental industry.  Export sales grew in line with expectations with a growth of 7.8% year on year. The current pressure on new car sales is likely to persist in the short-medium term driven by exchange rate volatility which is likely to impact new car prices”.

General Comments on March 2017 NAAMSA sales:

• Aggregate new vehicle sales increased month on month by 0.9%
• Passenger vehicles declined by 1.2% month on month
• Overall sales grew by 2.1% year on year
• Passenger vehicles increased by 2.1% year on year
• Year on year monthly comparison shows an increase of 7.8% in exports

General Comments on March 2017 Standard Bank passenger vehicles:

• The average contract term remained flat year on year
• The average deal size decreased by 11.3% year on year. The recent trend towards the pre-owned/used vehicles continues and is not likely to change in the short to medium term

Comments on NAAMSA New Vehicle Sales Report – March 2017

Nicholas Nkosi – Head of Standard Bank Vehicle and Asset Finance, Retail & Business Banking