VPI Q1 2022 Results
Vehicle Pricing Index (VPI) and Consumer Price Index (CPI)
Overall, the global automotive industry had another challenging quarter — with sourcing inventory remaining a major constraint. South African interest rate and fuel hikes increased the total cost of ownership. Despite supply chain disruptions, volatility in oil prices, lack of quality used supply, imminent unemployment rate increases, negative exchange impact and further pressure on disposable income during the quarter, sales returned to normal levels.
“The push for quality used vehicles and limited supply is well summed up by used vehicle pricing with the trend remaining strong. Sourcing inventory has continued to be major issue especially with consumers holding onto their vehicles for longer as it is becomes increasingly difficult to replace. The interest rate and large fuel hike in the first quarter did little to dampen the new vehicle sales as consumer demand continues to decrease their total cost of ownership.”
– Kriben Reddy, Head of Auto Information Solutions
VPI Q1 2022: Insights
The over R300K band remain the highest since we started tracking in 2011; a positive sign going into the next quarter, albeit at lower volumes.
25%
<R200,000
30%
R200,000-R300,000
45%
>R300,000
