Motor trade activity picked up in April‚ when the value of cars sold rose 9% from a year earlier.
The recent trend of sales of used cars outstripping those of new vehicles persisted: used-car sales rose 20.3% year-on-year in April‚ Statistics SA data (based on the value of cars) showed yesterday.
New-car sales‚ meanwhile‚ reversed the previous month’s 10.15% fall with an increase of 11.5%.
The vehicle industry has been feeling the effects of slow economic growth‚ high price increases for new cars‚ and possible further increases in interest rates after a cumulative one percentage points of increases since new vehicle sales hit a monthly record of R15.43-billion in March last year.
Industry data for May released earlier this month also showed a sector under pressure.
The National Association of Automobile Manufacturers of SA (Naamsa)‚ which reports on the number of vehicles sold‚ said sales of new vehicles dropped 10.3% in May from a year earlier‚ though exports of locally made cars rose slightly, up 0.8%.
The momentum of new vehicle exports was expected to improve further this year‚ driven by exports of light commercial vehicles to Europe.
Lower domestic demand would see fewer vehicle imports, resulting in the industry contributing positively to the country’s current account and balance of payments. The current account widened unexpectedly in the first quarter‚ the Reserve Bank’s quarterly bulletin showed on Tuesday.
SA car sales shift higher
The recent trend of sales of used cars outstripping those of new vehicles persisted: used-car sales rose 20.3% year-on-year in April‚ Statistics SA data (based on the value of cars) showed yesterday.
New-car sales‚ meanwhile‚ reversed the previous month’s 10.15% fall with an increase of 11.5%.
The vehicle industry has been feeling the effects of slow economic growth‚ high price increases for new cars‚ and possible further increases in interest rates after a cumulative one percentage points of increases since new vehicle sales hit a monthly record of R15.43-billion in March last year.
Industry data for May released earlier this month also showed a sector under pressure.
The National Association of Automobile Manufacturers of SA (Naamsa)‚ which reports on the number of vehicles sold‚ said sales of new vehicles dropped 10.3% in May from a year earlier‚ though exports of locally made cars rose slightly, up 0.8%.
The momentum of new vehicle exports was expected to improve further this year‚ driven by exports of light commercial vehicles to Europe.
Lower domestic demand would see fewer vehicle imports, resulting in the industry contributing positively to the country’s current account and balance of payments. The current account widened unexpectedly in the first quarter‚ the Reserve Bank’s quarterly bulletin showed on Tuesday.
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