NEW VEHICLE SALES DROP
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.