NAAMSA Vehicle Sales Report: New passenger vehicle sales continue to show strain

“New passenger vehicle sales continue to show strain with a slightly worse than anticipated 13.4% drop year on year driven by a combination of the long Easter weekend and pressure on consumer affordability driven by new car price increases. The current pressure on new car sales is expected to remain for the remainder of 2017”.

General Comments on April 2017 NAAMSA sales:

• Aggregate new vehicle sales decreased month on month by 28.0%
• Passenger vehicles declined by 27.6% month on month
• Overall sales declined by 13.4% year on year
• Passenger vehicles decreased by 13.7% year on year
• Year on year monthly comparison shows a decrease of 25.5% in exports

General Comments on April 2017 Standard Bank passenger vehicles:

• The average contract term remained flat year on year
• The average deal size decreased by 8.8% year on year. The recent trend towards the pre-owned/used vehicles continues and is not likely to change in the short to medium term

Nicholas Nkosi – Head of Standard Bank Vehicle and Asset Finance, Retail & Business Banking