South Africa new car industry forecast to grow under 1%


South Africa’s new vehicle industry is forecast to grow just under one per cent in 2018, according to WesBank, the country’s leading vehicle finance provider.

Chris de Kock, Wesbank Chief Executive Officer delivered the Bank’s view of the market and new vehicle sales forecast at the 2018 SAGMJ Car of the Year banquet in Midrand, South Africa on 13 March 2018.

“While the recent positive sentiments about South Africa’s economy will impact the automotive industry, this will take time to generate material growth. However, new vehicle sales are expected to see moderate growth this year,” said de Kock.

“The economic challenges faced in SA are structural in nature, and will take an extended period of time to correct. The positive sentiment brought about by the recent political changes is a good place to start and we are confident that this will lead to greater economic invest and improved growth prospects for the country.”

Dealer sales account for 80% of total sales in South Africa and are a key indicator of the total market outlook.

WesBank expects a modest increase of 3% in the dealer segment, driven mainly by passenger cars sales. 

The rental market which accounts for 13% of total sales saw unusually high growth in 2017, this will be tough to match during the coming year. Additionally, the ongoing drought in the Western Cape continues to take a toll on the rental market’s growth prospects with the Western Cape province accounting for 40% of South Africa’s tourism rental market.

In these challenging conditions, WesBank anticipates a 14.9% decline in rental sales this year.


About Author

Thabo Mphahlele is the BizNis Africa Head of Sales and Marketing. Mphahlele was previously MultiChoice Production Support Analyst responsible for developing and monitoring applications. In addition, Mphahlele develops and automates batch scripts and is responsible for the daily infrastructure maintenance at MultiChoice. As a Production Support Analyst, he is responsible for incident analysis solving , developing and constructing business reports for SQL and Oracle and implement change controls for the business. Additional responsibility includes monitoring system performance via SOA, Kibaba (Elasticsearch), H.P BSM, HP Sitescope. Mphahlele is responsible for creating infrastructure performance reports through HP Ops Analytics, monitoring payments via Splunk and in-house built-in tool and disaster recovery simulation and testing. At Nashua Mobile, he was responsible for application development and enhancing the web sites At South West Gauteng College, he was the IT Technician and Network Administrator. During his tenure at Double Digit Media, he was he focused on application and web site development for new and existing clients Mphahlele contributes as a Content Manager for BizNis Africa.

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