New car sales up in April in the face of rising costs

Sales numbers are done filtering in for the month of April, but it’s clear that overall figures have risen when compared to the same period a year ago.

“It was positive to see that demand in the Medium, Heavy and Extra Heavy Commercial Vehicle segments continued in April showing positive signs of stability and growth.,” commented Mark Dommisse, Chairperson of the National Automobile Dealers’ Association (NADA), which represents franchised car and commercial vehicle retailers in South Africa.

Dommisse reports that whilst there is demand for new cars, consumer decisions are being delayed due to continuous fuel increase, especially in the premium passenger segment. The pressure on consumer spending is ongoing. The 9% increase in fuel last month tied to increases in municipal rates and Eskom tariffs, as well as the upcoming elections, means that sentiment will remain under strain for the medium term.

Toyota sold 4 363 vehicles in April (including Lexus), compared with 4 010 units a year earlier, which represents an increase of more than 300.

Honda, down 83 units, and Hyundai/Kia posted slight gains last month, while the Volkswagen Group has shown growth. On the luxury front, BMW’s 1 446 sales represented a decline of 53 units and Mercedes’ figure of 1 064 is up 6 units.

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Papi Mabele

Papi Mabele has a marketing background, he is a digital marketing expert with extensive experience in launching and building global brands in the emerging markets. Papi is also an avid tech writer, enthusiast and all round tech junkie. As a freelance writer and analyst he has been numerously published in Popular Mechanics (SA), GQ South Africa, Premier Magazine, Driven Magazine, Bloem News, Courant, The Weekly, Enthooze Magazine and PiE magazine amongst others.