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Mark Dommisse

‘Perfect Storm’ takes heavy toll on South African Motor Industry

The month of July saw the South African economy being hit by the ‘perfect storm’ and the impact on the motor industry was huge,”  Mark Dommisse,  Chairperson of the National Automobile Dealers’ Association (NADA), said after studying the latest vehicle retail sales figures distributed by naamsa.

 “The effect is not limited to July and will in all likelihood have an ongoing negative effect for several months to come. Dealers face stock shortages while local manufacturers battle to keep production going due to disruptions in the component supply chain caused by global semi-conductor shortages and the cyber-attack on the port operating systems, disruptions in KwaZulu-Natal and parts of Gauteng as well as the reimposition of Level 4 Lockdown,” Dommisse explained.

“However, the sales figures are certainly not as bad as we had feared, with the aggregate total sales in July of 32 949 units being slightly better – 1.7% up – than the situation a year ago. Dealers also did well again, being responsible for an estimated 86% of sales, with rental companies taking an encouraging 9.2%, while 2.7% of sales went to industry corporate fleets and 2.1% to government. On a year-to-date basis our total sales after seven months of 2021 stand at 260 466 units, which is 33.7% higher than at the same time last year, which is heartening.

“Another blow for the industry at the end of the month, was the passing of Dr Johan van Zyl, Executive Chairman of Toyota SA Motors. It is fortunate that during his life he had the satisfaction of knowing the high esteem in which he was held by his colleagues and the broader industry. His inspiring leadership has created a company with an enviable reputation both in South Africa and abroad. As we reflect on the high standards he advocated, we are reminded of the many benefits dealers, as well as the broader automotive ecosystem, have enjoyed. He was a true inspiration to many who had the privilege to know and work with him,” added the NADA Chairperson.

 NADA is a proud 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.

 

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