New vehicle sales could shrink, says WesBank

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South Africa’s leading vehicle finance provider says new vehicle sales are set to decline by 1% in 2019.

“With little in the way of economic stimulation on the horizon and a slump in the global economy, a 1% decline in year-on-year sales is our forecast for 2019. We remain optimistic; however, it is challenging to predict which way the tide will turn following the elections,” said WesBank CEO Chris de Kock, speaking at the 2019 cars.co.za Consumer Awards held in Midrand last night.

De Kock added that there was a sharp sales decline in the passenger segment in 2018, which was starkly evident in the dealer channel, where the majority of buying activity takes place. In addition, buying patterns show that consumers have either been delaying purchases or buying downwards moving out of the premium market and into the mainstream segments.

South Africa’s leading vehicle finance provider says new vehicle sales are set to decline by 1% in 2019.

“With little in the way of economic stimulation on the horizon and a slump in the global economy, a 1% decline in year-on-year sales is our forecast for 2019. We remain optimistic; however, it is challenging to predict which way the tide will turn following the elections,” said WesBank CEO Chris de Kock, speaking at the 2019 cars.co.za Consumer Awards held in Midrand last night.

De Kock added that there was a sharp sales decline in the passenger segment in 2018, which was starkly evident in the dealer channel, where the majority of buying activity takes place. In addition, buying patterns show that consumers have either been delaying purchases or buying downwards moving out of the premium market and into the mainstream segments.