New auto sales in South Africa dipped by 26pc to 33,515 units in August from the prior year according to the National Association of Automobile Manufacturers of South Africa (Naamsa) data. The association states that the market will remain low for the remainder of 2020 as the South African economy faces several issues.
Total auto sales may have declined but medium and heavy commercial vehicles segments reported a growth from the prior year. Medium and heavy truck sales rose by 7.7pc and 9pc, respectively, in August from the preceding year.
Export sales also dipped by 46pc to 23,337 units in August compared to the prior year. Passenger car sales declined by 32pc to 9,458 units compared to the prior year.
Domestic production from January to August fell by 40pc to 257,406 units and total local sales decreased 34pc to 227,967 units.
Activity in the new vehicle market is expected to remain low for the remainder of the year owing to uncertainties relating to the economic impact of the COVID-19 pandemic. Several consumers and businesses continue to adapt to short-term budget pressures, said Naamsa.
South Africa suffers heavy blackouts which comes at the worst possible time for the South African economy. Eskom announced that the heightened risk of load-shedding will haunt the South African economy for another year. All this point to an already hard-hit economy with no expectations for a quick recovery any time soon, according to Naamsa.