The start of 2017 shows positive signs for the new vehicle market

“The start of 2017 shows positive signs for the new vehicle market as we experienced a year on year growth of 3.7% largely driven by rental industry sales contribution of 23.8%. Despite this positive increase in car sales, passenger vehicle sales still remain under pressure and so will the export market given uncertainty in our major trading partners”.

General Comments on January 2017 NAAMSA sales:

• Aggregate new vehicle sales improved month on month by 20.9%
• Passenger vehicles increased by 29.9% month on month
• Overall sales grew by 3.7% year on year
• Passenger vehicles increased by 4.7% year on year
• Year on year monthly comparison shows a decline of 37.7% in exports

General Comments on January 2017 Standard Bank passenger vehicles:

• The average contract term declined by 1.2% year on year
• The average deal size decreased by 0.8% year on year even, we are still seeing a shift towards the pre-owned/used vehicles. This trend is not likely to change in the short to medium term

Comments on NAAMSA New Vehicle Sales Report – January 2017

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