VPI Q4 2019 Results
Overall, the South African car market has had another challenging quarter with low price increases, favourable interest rates and lower fuel prices doing little to tempt consumers’ purchasing decisions. Consumers are entering a favourable new vehicle market thanks to low inflation rates predicted for 2020 and incentives from dealers ranging from trade assistance to buy-back options and vehicle discounts. The 2020 outlook for new vehicle sales is stagnant at best against a backdrop of continued load-shedding by Eskom and Moody’s pending decision on South Africa’s investment rating.
“The major issue facing the local automotive industry is the need for structural reform at a macro-economic level. We need to see sustained positive economic growth to get the new car market moving, and the challenge is that in 2019 we weren’t there. The problem is, it is unlikely that this situation will change in the short term, indicating that we may continue to battle for some years yet. Exports provide a bright spot by retaining jobs and keeping production lines going, but they are still a relatively small part of greater sales.”
– Kriben Reddy, Head of Auto Information Solutions
Q4 2019 Vehicle Asset Finance Results
We’ve seen a marginal shift back to vehicles priced over R300,000 in Q4 2019 from Q3 2019 (albeit still lower than Q4 2018) which indicates consumers continue to feel strain on disposable income.
VPI Q4 2019: Insights
Unpack the most important facts, findings and insights held in this quarter’s infographic. Download our latest version here.