An encouraging sign from May’s new vehicle sales is the fact that 87,8% of total reported sales are attributed to retail dealers. “Strong sales through the retail dealer channel means there is an improvement in consumer confidence,” says Mark Dommisse, the Chairperson of the National Automobile Dealers’ Association (NADA).
Last month saw a 7,6% increase compared to April’s sales to finish on a total of 38 337 vehicles.
This time last year was markedly different for vehicle retail dealers. The government had just allowed dealers to resume retail sales, albeit at limited capacity as the coronavirus pandemic tightened its grip on the world.
It’s a waste of time to compare year-on-year sales data as the country’s dealers were reeling from lockdown measures put in place by government. By focusing on April and May’s positive sales positive figures, NADA’s Dommisse says the renewed vigour in dealers is a sign of an upward trend in consumer confidence.
SUVs and Crossovers continue to make up a considerable chunk of retailers sales. “There was also strong buying sentiment at the more premium SUV end of the scale being retailed in May,” Dommisse said.
“It is also invigorating to see the introduction of and the appetite South African car buyers have for new model ranges, specifically in the Compact SUV segment, such as the Toyota Urban Cruiser, Toyota Starlet, Suzuki Vitara Brezza, and the ongoing stream of new models from Hyundai and Kia. Also notable are the Peugeot 2008 and the Haval Jolion, with Nissan set to join the fray with its Magnite crossover,” Dommisse concluded.