The passenger car sales increased sharply by 6.2%, accounting for two-thirds of the total sales. In detail, the year-on-year growth of this segment through different channels is as follows:
- Dealer channel: 4%
- Rental channel: 10.6%
- Government channel: 152.5%
The passenger car sales increased sharply by 6.2%, accounting for two-thirds of total sales
“July’s sales performance can be attributed to positive changes in the underlying fundamentals in the market. We see this in our data, where the demand for new vehicle finance is up 9% this past month,” said Rudolf Mahoney, Head of Brand and Communications at WesBank.
Household debt levels have fallen steadily and stay at 72%. This also shows the proportion of money that consumers spend for debt payment. Meanwhile, households’ available incomes increase slightly. Besides, with the domination of the Rand, headline inflation and new car price inflation also have a decrease.
In that advantageous situation of currency, car makers have also brought a lot of benefit to their customers. There are more and more motivation and beneficial policies offered by the car manufacturers to attract buyers in the new auto market.
“Combined, these factors will be conducive to new vehicle sales and positive consumer sentiment. With this past month’s 25 basis points drop in the interest rate, we anticipate that the economy is now in a cycle of rate cuts. Failing any shock events on the local or global stage, this is great news for the economy and new vehicle market,” added Mahoney.
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