The outlook for South African domestic car sales for 2020 was slashed to 372,000 units, as against the previous outlook of 405,000 units by the National Association of Automobile Manufacturers of South Africa (Naamsa) on August 5 as COVID-19 pandemic worsened the existing economic recession.
South Africa’s domestic new vehicle market and exports are likely to improve in the second half of 2020 (H2 OF 2020), but the former could drop back to the levels of 20 years ago, stated Naamsa.
The country’s domestic production is likely to witness a fall by 31pc to 435,500 units in 2020, compared to 2019. The association cut its projection for exports by 5pc to 265,500 units from 387,125 units in the prior year.
In Q2, vehicle segment registered a significant decline on the back of COVID-19 related temporary closure of the motor industry along with negative economic growth rate. New vehicle sales and export sales fell by 65.2pc from the prior year quarter.
Additionally, the pandemic also led to supply chain disruptions and ports closure during the quarter along with exchange rate depreciation and higher logistics costs.
Domestic Vehicle Production
| Vehicle Production | Q2 2020 | Q2 2019 | Pc Change |
| Passenger Cars | 28,149 | 85288 | -67% |
| LCVs | 21,103 | 58,746 | -64% |
| MCVs | 961 | 2,117 | -55% |
| HCVs | 538 | 1,296 | -58% |
| XHCVs | 1,715 | 3,254 | -47% |
| Buses | 136 | 217 | -37% |
During first half of 2020, Europe remained the biggest importer with 78,520 units, compared to 133,672 units in the prior year period, followed by Asia with 12,357 units, Africa with 6,934 units, Australia with 6,144 units, North America with 3,318 units, South America with 1,563 units and Central America with 106 units.