Car sales decline

Despite business confidence showing small signs of improvement in the fourth quarter, buyers of new vehicles are holding off on making their purchasing decisions until economic uncertainty steadies.

This is according to Gary McCraw, National Director of the National Automobile Dealers’ Association, commenting on the latest new vehicle sales information released by the National Automobile Association of South Africa (NAAMSA).

The National Automobile Dealers’ Association (NADA) is a professional body representing the interests of business persons who own, operate and manage new passenger and commercial vehicle franchise motor dealerships and qualifying used vehicle only outlets in SA. There are 1,326 NADA members. NADA members make up 85% of all new franchise dealerships in South Africa.

The overall dealer sales channel for November 2019 saw 35,168 new vehicles (passenger and commercial vehicles) sold on dealer floors in November 2019 showing a 4.6% decline in sales on dealer floors compared to the previous month, October 2019.

Cumulative dealer sales year-on-year (November 2019 versus November 2018) saw 399,454 new vehicles sold on dealer floors year-to-date to November 2019 (2018: 413 346) showing a 3.4% decline on dealer floors year-on-year.

“It is tough going in the market at the moment and we all still wait for the green shoots to appear.

“As sales continue to decline and consumers buckle from the rising cost of living and economic uncertainty, other areas of business such as parts, workshop and pre-owned cars remain a key area of focus for franchised retailers,” McCraw said.

SA now has about 1,600 new franchised automotive dealerships comprising R48-billion worth of investment.

It employs 60,000 personnel directly and a further 25,000 indirectly.