The latest WesBank Vehicle sales Confidence Indicator shows that the automotive sector in South Africa appears positive at the beginning of 2012, with confidence levels among dealers increasing for the first three months of the year.
The first-quarter indicator shows that the confidence level in sales among dealers rose to 6.4 out of 10, from 6.1 at the end of 2011. Chris De Kock, WesBank sales and marketing executive head, believes that this increase reflects the fact that the high levels of sales activity within the automotive sector last year appear to have continued into 2012.
“The local vehicle sales market has showed unexpected, continued growth at the start of the new year, with total industry vehicle sales increasing by 8.8% year-on-year in January compared with the same period a year earlier,” he notes.
This growth is due to the fact that manufacturers continued to launch new models at affordable prices and new car prices grew slower then those of used vehicles, and also because insolvencies among private individuals have also consistently declined in recent years. But, although the confidence level continues to rise, the actual vehicle sales are possible to remain in single digits the entire year.