The SA Daily
03 December 2018
Nov total vehicle sales
- New vehicle sales for November is due out today; Bloomberg consensus is for total new vehicle sales to have eased to 1.3% y/y, after October’s rebound to 1.7%y/y and the 2.0% y/y contraction in September. Several headwinds show that conditions are still unfavourable for vehicle sales in the near term.
- New vehicle domestic sales had increased 1.6% y/y in October due to fairly strong growth in the various commercial vehicle segments.
- However, YTD, domestic vehicle sales are 0.5% below 2017 levels due to weaker domestic demand in 2018. New passenger sales declined 0.7% y/y in October, although car rental sales were relatively robust, but with sales through dealers (to households) slowing.
- Even though new vehicle prices have remained below inflation, and sales incentivization is commonplace, the combination of merely marginal growth in house prices as well as the declining performance of the JSE is impinging on the net wealth of South African consumers, keeping them from taking advantage of lower prices.
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