The overall industry was down 6.9 percent versus the same period last year, despite surprisingly high rental sales, of which accounted for one in four passenger vehicles sold. General Motors South Africa (GMSA) posted total sales of 3 437 units in January.
A key highlight for GMSA last month was the locally produced Chevrolet Spark which sold 1 018 units.
“The January sales results are a clear indication that consumers are under pressure due to the increase in interest rates general inflationary pressure and high levels of household debt. We expect the NAAMSA new vehicle industry to show a continued decline in volume throughout 2016. This is evidenced in the dealer channel volumes. January saw a drop of 16% in passenger sales and 12% drop in Light Commercial sales, representing the lowest dealer volume since April 2011. We had expected a weaker January in the dealer channel, but this was even lower than our conservative expectations,” says Brian Olson, GMSA Vice President Vehicle Sales, Service and Marketing.
“As the year progresses we expect to see a stronger used vehicle market as the pressure mounts on South African consumers. In January we saw a drop in new vehicle applications of 19% versus December whereas used vehicle applications were up 4%,” said Olson.
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