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Honorary Master
OPINION | March sales figure of 50 000 new vehicles sold is good for SA consumers' peace of mind
• New vehicle sales surpassed 50 000 units in March 2022.
• October 2019 was the last time the local market saw such strong sales figures.
• NADA believes that the sales figure is good for morale-building.
It is incredible how new vehicle sales in South Africa continue to grow substantially when the world is in chaos and the prices of commodities and other products are rocketing.
March was a long selling month and the end of the fiscal year for many companies and organisations. Still, few industry commentators could have expected an aggregate figure of 50 607 units, 16.5% higher than March 2021 and the highest monthly total since pre-pandemic October 2019. The retail dealer channel was responsible for 85.8% of sales, which was encouraging as many dealers are still short of stock, both new and used.
The passenger car segment was a staggering 27% higher than the same month a year ago, while the medium and heavy truck segments show marked increases, signalling improved business confidence. The increased interest rate hike, which had been anticipated, was low, so it would have had a negligible effect on sales numbers. At the same time, there was good news for consumers in the R1.50/litre decrease in the fuel price due to a tax cut funded by the sale of strategic crude oil reserves.
Earlier, at the time of the Budget Speech, we were pleased to hear from the Finance Minister, Enoch Godongwana, that there were no significant implications in terms of personal tax or company vehicle perks tax increases to change potential buyers' vehicle purchasing decisions.
There was more good news at the government's fourth investment conference, where automotive companies - both OEMs and component manufacturers - were again prominent in making significant pledges on upcoming investments in their South African operations. This is good for morale-building in the motor industry, while providing peace of mind to consumers in terms of the ongoing commitment by local motor manufacturers.
Alex Boavida is the vice-chairperson of the National Automobile Dealer Association (NADA).
www.news24.com
• New vehicle sales surpassed 50 000 units in March 2022.
• October 2019 was the last time the local market saw such strong sales figures.
• NADA believes that the sales figure is good for morale-building.
It is incredible how new vehicle sales in South Africa continue to grow substantially when the world is in chaos and the prices of commodities and other products are rocketing.
March was a long selling month and the end of the fiscal year for many companies and organisations. Still, few industry commentators could have expected an aggregate figure of 50 607 units, 16.5% higher than March 2021 and the highest monthly total since pre-pandemic October 2019. The retail dealer channel was responsible for 85.8% of sales, which was encouraging as many dealers are still short of stock, both new and used.
The passenger car segment was a staggering 27% higher than the same month a year ago, while the medium and heavy truck segments show marked increases, signalling improved business confidence. The increased interest rate hike, which had been anticipated, was low, so it would have had a negligible effect on sales numbers. At the same time, there was good news for consumers in the R1.50/litre decrease in the fuel price due to a tax cut funded by the sale of strategic crude oil reserves.
Earlier, at the time of the Budget Speech, we were pleased to hear from the Finance Minister, Enoch Godongwana, that there were no significant implications in terms of personal tax or company vehicle perks tax increases to change potential buyers' vehicle purchasing decisions.
There was more good news at the government's fourth investment conference, where automotive companies - both OEMs and component manufacturers - were again prominent in making significant pledges on upcoming investments in their South African operations. This is good for morale-building in the motor industry, while providing peace of mind to consumers in terms of the ongoing commitment by local motor manufacturers.
Alex Boavida is the vice-chairperson of the National Automobile Dealer Association (NADA).
OPINION | March sales figure of 50 000 new vehicles sold is good for SA consumers' peace of mind | Life
New vehicle sales broke through a threshold last experienced in October 2019: over 50 000 new vehicle sold!