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• June is the first full month of new vehicle sales since February
• New vehicle sales saw a decline of 30.7% year-on-year
• 19 264 passenger cars were sold in June
South African vehicle sales posted a 30.7% year-on-year drop, a decline of 14 086 units to 31 867. June is the first full month of sales since the country-wide lockdown was implemented in late March to curb the Coronavirus outbreak.
An estimated 29 100 units or 91.3% represented dealer sales, 4.6% sales to government, 3.7% to industry corporate fleets, and an estimated 0,4% represented sales to the vehicle rental industry, according to National Association of Automobile Manufactures of South Africa (Naamsa).
Passenger car sales were counted at 19 264, light-commercial vehicles 10 189 and heavy trucks and buses 1803.
New passenger car sales registered a substantial decline of 33.4% to 19 264 compared to 28 931 in June 2019. Naamsa cites the car rental industry's lack of representation due to the lockdown restrictions imposed on the tourism sector.
Outlook
The National Treasury expects the economy to shrink by 7.2% this year which Naamsa suggests will keep the demand for new vehicles under severe pressure.
"Middle class disposable income was already under huge strain prior to the national lockdown resulting from COVID-19, which has significantly exacerbated the already weak macro-economic climate in the country," Naamsa said.
