New vehicle sales potential throttled


The potential for new vehicle sales remains throttled by general economic uncertainty, rising interest rates, and inflationary pressures that are increasing the burden of household budgets. 



Commenting on April new vehicle sales, Lebo Gaoaketse, Head of Marketing and Communication at WesBank said the latent demand for vehicle replacements exists, but the willingness to commit limits ultimate sales.

Applications for new vehicle finance at WesBank increased over 9% year-on-year, yet market sales remained flat during April,” said Gaoaketse.

According to numbers released by naamsa | the Automotive Business Council, April sales were 0.2% down to 37,107 units compared to the same month last year. “Given there was one more selling day in the month - interrupted by public holidays and long weekends - than the similarly disrupted April last year, the performance is even more lackluster,” says Gaoaketse. “However, the harsh realisation of the impact is this volume of 13,007 units less than new vehicles sold during March.”

Gaoaketse also notes that the demand for vehicle finance is predominantly in the new vehicle market and not for pre-owned cars and bakkies. “Applications for finance of used vehicles - albeit twice the volume of new vehicles - was unchanged year-on-year in the bank’s book,” said Gaoaketse. “Additionally, a year ago, pre-owned finance applications were approximately 5% down.”

Passenger cars weathered the market the worst, declining 6.1% year-on-year to 24,174 units. Dealers retailed 21,528 of those off showroom floors. The rental market was expectedly depressed given the short sales month, buying 1,493 cars during April.

Light Commercial Vehicle sales were 11% up to 10,611 units. The dealers also fared better, their sales up 7.1% in the segment as new products continued to generate consumer interest. 

“With a further interest rate hike expected during May in an effort to curb high inflation, the impacts that are throttling the market should be expected to continue for some time,” says Gaoaketse. “Consumers should be carefully considering their vehicle requirements within their affordability to manage their budgets – and responsibly limit their indebtedness.”

YouTube video link: is an award-winning Digital Media, Marketing, and Advertising Company est. 2015, is a Member of the Independent Media Association of South Africa (IMASA), and Brand South Africa's Play Your Part Ambassadors, with a global reach of over 10 million

E-mail to take your brand/business to the next level

Like What You've Read ? Be an Anonymous Angel 
CLICK HERE for the latest Tech News
CLICK HERE for the latest News & Trends
Follow @letstorqueza
Keep up to date with all that is happening in South Africa
Subscribe to our Newsletter

Follow @ilovezacom on
 #iloveza❤️🇿🇦 #AfterFajrGrind Accolades:

2021 Winner of Brand South Africa's Nation Pride Play Your Part Award

2018 Winner of Tech Savvy Boss Award at the Roshgold Young Business Achiever Award

Nabihah Plaatjes Accolades:

2023 CEO of the Independent Media Association of South Africa (IMASA)

2018 Contributing Author to SAFFRON: A Collection of Personal Narratives

2017 Recipient of Owami Women & Brand South Africa's Play Your Part Award

Ziyaad Plaatjes Accolades:

2021 Mail & Guardian Top 200 Young South Africans: Arts, Entertainment, Film & Media 

2020 Contributing Author to There's a Story in Everyone

Trending Posts