New vehicle sales show significant decline in January

New vehicle sales statistics for the month of January 2020 show overall sales of 39,475 units, an overall decline of 8.1% for the same month last year in January 2019. An estimated 32,050 units were sold by the dealer channel which is 81.2% of total sales in January 2020.
Unpacking passenger vehicle sales, the overall new passenger car market showed a decline of 5.1%, with the dealer channel showing some degree of resilience with a decline of 1.5%.
Overall light commercial vehicle sales fell by a whopping 16.3% over the same month of 2019, with dealer sales falling 15% – a “telling a tale” as to consumer affordability in this segment, commented Mark Dommisse, Chairperson of the National Automobile Dealers’ Association (NADA).
According to Dommisse, “We are in for an interesting ride with industry forecasts in the red for the new car market in 2020. Over the past five years, the South African franchised motor dealer environment has been under enormous pressure. The decline in sales volumes and the vehicle park has had a direct impact on employment and dealer profitability.”