Press - May 2020

The National Lockdown Stops New Vehicle Sales Dead in South Africa.

With the national lockdown rendering the new-vehicle buying experience void due to dealers being shut down and production plants abandoned in cooperation with new social distancing and work from home ideologies, that don’t translate in such an industry. The latest numbers from NAAMSA (National Association of Automobile Manufacturers of South Africa) paint a grim picture for the Motor Industry under the Covid-19 crisis. Dealers networks, manufacturers and finance houses are somewhat fearful of the stifled numbers the direct ramifications that have on an industry that is responsible for such large-scale employment and contributes largely to the economy.

April 2020 New Vehicle Sales

With a total of 574 vehicles sold in April with 105 (down 99.6%) of these being passenger cars, the LCV and commercial did 318 units and 151 respectively. Ford placing first, Toyota Second and Commercial Truck brand MAN making up the top places suggests most of the sales being focused on fleet or commercial sales. Significantly for South Africa’s vehicle export market which saw only 901 Units (down 97.3%). The sad reality is the terrible trickle-down effect for the economy, with plants shut down and the Motor industry’s heavy reliance on sales and 6.9% contribution to the GDP serious consequence are yet to be felt.

So what now?

Well, the truth is most businesses have had to be innovative with operations during the lockdown, buying a car in the lockdown is now possible. The digital age has allowed for the whole buying process to be completed with digital dealers like Mini’s here – https://buy.mini.co.za/. Online purchases for vehicles is not a new thing, but only now will it be seen in its purest form with the reality of resentments for many dealer staff and employees caused by a lack of production. Tough times ahead for the motor industry.

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