Johannesburg - South African consumers are notorious for voting with their wallets; if you price yourself out of the market, they don’t complain, they just quietly melt away, and the first you hear of it is when sales of your products start falling.
And that’s what has been happening in the South African new-vehicle business; according to the TransUnion Vehicle Price Index for the fourth quarter of 2016, the average price of new vehicles has gone up by 9.4 percent, compared to the last quarter of 2015 - that’s more than double the average price increase between the fourth quarter of 2014 and the same period in 2015.
The price rise has been, on average, more than three percent higher than the general rate of inflation for the past three quarters, which has pushed many South Africans, their household budgets already stretched to the limit, away from new cars and into the used-car market.
Sales figures released by the National Association of Automobile Manufacturers of South Africa bear that out, with a 12 percent drop in the sales of new cars and a 9.4 percent fall in new light commercial sales, between the fourth quarter of 2015 and the same period last year.
Full story at IOL.
By Industry News.
No comments:
Post a Comment