12%

NEW VE­HI­CLE SALES DROP

Finweek English Edition - - THE WEEK -

Sales of new ve­hi­cles in South Africa will drop by around 12% in 2016 com­pared with 2015, ac­cord­ing to FNB. Us­ing the same fore­cast model, the worst-case sce­nario for 2017 is a fur­ther de­cline of 5%, or a best-case sce­nario of sales stay­ing flat as house­hold in­come lev­els re­main un­der pres­sure, En­gi­neer­ing News re­ported. One no­table de­cline has been ve­hi­cle sales to govern­ment, which are down 56.3% year-to-date, to 10 930 units, it re­ported. Ford said it ex­pects a flat to strength­en­ing rand next year, which should make car im­ports more af­ford­able and should also lead to sta­ble in­ter­est rates.

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