INDUSTRY NEWS
Demand slides for new cars
The latest figures reveal impact of vehicle price increases and high debt in SA
The local motoring industry faced yet another challenging quarter, according to the latest TransUnion SA Vehicle Pricing Index (VPI) for new and used vehicle sales. The Q3 2016 VPI found that the rate of new and used vehicle pricing increased further to 9.9% and 2.8% in Q3 2016 from 8.4% and 2.7% in Q2 2016 respectively, which suggests used car sales volumes will continue to rise. The VPI index measures the relationship between the year-on-year increase in vehicle pricing for new and used vehicles from a basket of passenger vehicles which incorporates the top 15 volume manufacturers. Sales data collated from the industry was used to create the index. According to the VPI report, the further increase of new vehicle pricing can be attributed to a delayed reaction to the rand weakness and ongoing poor economic conditions. "The ongoing recession in the domestic new vehicle market, combined with an extremely difficult economic environment, points to an unfavourable short to medium-term o...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.