Second time this year that monthly vehicle sales figures exceed last year’s

(AP Photo/Michael Probst)
CAPE TOWN – Vehicle sales increased modestly by 0.2percent in October to 51978 units when compared with sales in the same month a year ago, only the second time this year that monthly sales were in positive territory, National Association of Automobile Manufacturers of South Africa (Naamsa) executive manager Dr Norman Lamprecht said on Friday.

The vehicle sales industry is under pressure due to the weak economy and consumer financial stress.

A TransUnion Auto Information Solutions survey showed last week that consumers continue to spend less on cars, with the average vehicle loan size in the third quarter of 2019 the same size as in the second quarter of 2013, which suggested that consumer buying power had remained flat for six years.

The survey showed consumers were opting for less expensive entry-level vehicles and there was a shift in the third quarter to vehicles priced under R200000.

The Naamsa statistics showed that in October, passenger vehicles sales increased 8.4percent to 35904 units, when compared with 32110 in September, but only increased 2.5percent when compared with October 2018.

Source: iol.co.za