Weak Rand pushes New Car Sales down by 10%

Total vehicle sales have fallen every month since December 2015 with new vehicle sales for June dropping 10.6% year-on-year to 44 939 units. Data from the trade and industry department showed exports slipped 1.4% to 30 965 units in June compared with the same period last year. Total vehicle sales have fallen every month since December 2015. The fall in the June passenger vehicle sales mean that it has contracted for 16 consecutive months.

“The deterioration in the currency has seen vehicle price inflation accelerate as manufacturers and dealers are unable to absorb the margin compression,” FNB said in its economics weekly update. “This has precipitated a distinct shift to the second hand market which we expect to continue throughout the year.”

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