The National Automobile Dealers’ Association (NADA) said the uptick in new car sales was in line with the eased lockdown levels and the gradual re-opening of the economy.
Car rental/purchase agreement, car keys. Image: 123rf
CAPE TOWN – Vehicle sales in South Africa have increased by 12.5% since August.
The National Automobile Dealers’ Association (NADA) said the uptick in new car sales was in line with the eased lockdown levels and the gradual re-opening of the economy.
To give the sector a further boost, the National Association of Automobile Manufacturers of South Africa (NAAMSA) lobbied for a drop in the taxes on vehicle purchases.
The month of September recorded more than 37,400 new car sales in South Africa. Fewer than 33,300 were sold in August.
“I think where the consumers are actually buying cars right now is really a product of a few things. The first thing is the low-interest rates. What’s happening is that the cost of buying a new car is probably cheaper than keeping an old one. And the other thing is just the absolutely need to transport yourself in your own vehicle,” said NADA’s chairperson Mark Dommisse.
Dommisse said NAAMSA was trying to get car sales taxes reduced by about four percentage points.
In August, vehicle exports dropped by 40% compared to September.
