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“It is amazing the way new vehicle sales in South Africa continue to grow substantially at a time when the world is in chaos and prices of commodities and other products are rocketing,” said Alex Boavida, Vice Chairperson of the National Automobile Dealer Association (NADA), when commenting on retail sales for March which have been released by naamsa I The Automotive Business Council.
“March was a long selling month and the end of the fiscal year for many companies and organisations, but few industry commentators could have expected an aggregate figure of 50 607 units, which was 16.5% higher than March 2021 and the highest monthly total since pre-pandemic October 2019. The retail dealer channel was responsible for 85.8% of sales, which was encouraging as many dealers are still short of stock, both new and used.
“The passenger car segment was a staggering 27% higher than the same month a year ago, while the medium and heavy truck segments show marked increases too, which signal improved business confidence,” she added.
“The increased interest rate hike, which had been anticipated, was low, so would have had negligible effect on sales numbers, while there was good news for consumers in the R1.50 per litre decrease in the fuel price due to a tax cut funded by the sale of strategic crude oil reserves.
“Earlier, at the time of the Budget Speech, we were pleased to hear from the Finance Minister, Enoch Godongwana, that there were no major implications in terms of personal tax or company vehicle perks tax increases to change potential buyers’ vehicle purchasing decisions.
“There was more good news at the government’s fourth investment conference, where automotive companies – both OEMs and component manufacturers – were again prominent in making significant pledges on upcoming investments in their South African operations. This is good for morale building in the motor industry, while providing peace of mind to consumers in terms of the ongoing commitment by local motor manufacturers,” concluded Boavida.
NADA is a constituent association of the Retail Motor Industry Organisation (RMI).
NADA
The National Automobile Dealers’ Association (NADA) is a professional body representing the interests of business persons who own, operate and manage new passenger and commercial vehicle franchise motor dealerships and qualifying used vehicle only outlets in South Africa. There are currently 1,326 NADA members. NADA members make up 85% of all new franchise dealerships in South Africa. South Africa currently has approximately 1,600 new franchised automotive dealerships comprising R48-billion worth of investment. It employs 60,000 personnel directly and a further 25,000 indirectly.
NADA is a proud constituent association of the Retail Motor Industry Organisation (RMI) and has affiliations with a number of similar organisations world-wide. NADA is committed to enhancing the image of the retail motor business; facilitating the interface between dealers and the motor manufacturers and importers who supply them; building rewarding relationships between dealers and their customers; and bringing relevant issues facing its members to the attention of government at all levels.
As a major role player in the automotive industry, NADA and its members are strong supporters of complying with the Retail Motor Industry Organisation and the Consumer Protection Act’s Codes of Conduct for the Automotive Industry. In all forums, NADA is the fully representative and respected voice of the retail motor industry in South Africa.
