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Interest rates hit passenger car market |
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Written by Staff Reporters
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Year 2008 started on “a
weak note”, says the National Association of Automobile Manufacturers of South
Africa (Naamsa). January is traditionally the month in which buyers seek to
take advantage of the year's new model registrations and thus reaping from the
higher vehicle residual value by the end of the year.
January's low sales were due to the effects of higher
interest rates and high personal debt levels on consumer spending.
Total sales came in at 47296 registering a decline of 9.4%
compared to 52212 units sold in January 2007. Sales of new light commercial
vehicles, bakkies and minibuses at 14196 units during January, 2008 reflected a
decline of 134 units or 0.9% compared to the 14330 units of the corresponding month
last year. The passenger car sales came in at 30483 units to reflect a decline
of 5204 units or 14.6% compared to the 35687 new cars sold during January,
2007.
“The year on year comparison should however be qualified by
the fact that the year ago January new car sales had represented an all time
record month for January sales. Given the slow down in the growth momentum over
the past year, it was clear that higher interest rates and high personal debt
levels were increasingly affecting consumer spending and new car purchasing,”
said Naamsa.
The medium and heavy
commercial vehicle segment performed better than other segments due to the
positive investment sentiment and high levels of infrastructural spending. The
medium commercial vehicle segment sold 1114 units while the heavy duty vehicle
segment sold 1503 units.
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