Record exports, but new unit SA sales decline

CAPE TOWN – Vehicle exports were likely to reach a third consecutive record-high in 2020 even as sales of new units locally were likely to decline, the National Association of Automobile Manufacturers of SA (Naamsa) said yesterday.

Africa’s largest carmaker is projected to ship 391900 vehicles this year, up from the record 387125 units in 2019, Naamsa said in its 2019 fourth-quarter industry report. The surge in exports would potentially offset the continued decline in domestic new vehicle sales, which were expected to fall to 525500 units from 536611 in 2019.

Demand for new vehicles has been hit by recessionary economic conditions and depressed consumer and business sentiment in the country.

“The new vehicle market is expected to face further consolidation, until South Africa breaks out of its low-growth trap and the economy is put on a higher-growth path,” said Naamsa chief executive Michael Mabasa.

Naamsa expected the economy to expand by 0.8percent in 2020, and consumers were likely to continue to buy cheaper models or delay purchasing decisions until there was greater economic stability.