New car sales in SA shows surprising increase amid pandemic

The COVID-19 pandemic and resulting lockdown has placed severe financial strain on many in South Africa, yet the the country’s motor industry has stayed strong throughout.

Interestingly, many manufacturers and dealers in the country are working overtime to meet an increasing demand from South African consumers.

New vehicle sales statistics for the month of October 2020 by the National Association of Automobile Manufacturers of South Africa (Naamsa) revealed that while sales are much lower compared to this time last year, they are growing month to month amid the pandemic.

In October, 38 752 new vehicles were sold, representing the fourth consecutive month of sales growth by volume since lockdown levels eased.

“Out of the total reported industry sales of 38 752 vehicles, an estimated 32 478 units or 83,8% represented dealer sales, an estimated 9,4% represented sales to the vehicle rental industry, 3,8% sales to government, and 3,0% to industry corporate fleets,” reads the NAAMSA report.

“Activity in the new vehicle market is gradually improving every month but sales remain very slow to recover to previous levels. The country’s economy remains fragile and while the economy would slowly regain momentum, tough months were still ahead before business and consumer confidence was rebuilt.”

Going forward, lowered interest rates could be of great assistance for  businesses and consumers from an affordability point of view. With the easing of lockdown restrictions, the new normal has begun as the country will ease gradually into rebuilding the economy.

“New vehicle sales in South Africa are slowly picking up but not at 2019 levels yet. We are not out of the woods yet. While vehicle exports are making a steady comeback, we remain cautiously anxious about the reports of a COVID-19 second wave across Europe which could further depress our overall outlook for the balance of this year”, warns Mikel Mabasa, Naamsa CEO.

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