Plans to address vehicle affordability in South Africa could result in the production of a budget vehicle that could be sold for about R40 000.

Plans to address vehicle affordability in South Africa could result in the production of a budget vehicle that could be sold for about R40 000.

A special task force chaired by Naamsa and comprising various industry representatives has been established to look at vehicle affordability in SA.

For this to be viable, all players including government and manufacturers would have to help in keeping costs down.

"There is an emerging market of buyers who will not be able to participate in the market, as they cannot afford even today's cheapest vehicles," said a task team member. "We are looking at the feasibility of introducing a cheaper entry-level vehicle at about R40 000."

According to a article, McCarthy Motor Holdings chairman Brand Pretorius said that key to government’s motor industry development programme had been to make vehicles more affordable. He said that this had not materialised and the time had come to revisit this objective.