Vehicle sales increase in November
While the general trend in new vehicle sales remains negative, Black Friday specials and the recent introduction of 72-month vehicle loans could likely have been the cause for the month-on-month uptick in new vehicle sales in November.
During November 2020, 698 new vehicles were sold, representing a 24.9% increase from the 559 vehicles sold in October 2020. This is however a 20.2% decline from the 875 new vehicles sold in November 2019.
Year-to-date 6,913 vehicles have been sold of which 2,881 were passenger vehicles, 3,554 were light commercial vehicles, and 478 were medium and heavy commercial vehicles.
IJG research indicates the fact that the 12-month cumulative figure is hovering around levels last seen in 2005 is a consequence of the recessionary environment.
“Eroded consumer and business confidence, coupled with government’s commitment to fiscal consolidation as well as a halt in foreign direct investment brought on by poor policy guidance means that domestic economic growth (and by extension new vehicle sales) are expected to remain muted for the foreseeable future,” IJG noted.