SA vehicle sales tumble

JOHANNESBURG – South African car sales in June slumped nearly 26 per cent to their lowest level in more than four years as tight monetary conditions hit consumers, manufacturers said on Wednesday.

“The daily sales rate during June 2008 represented the lowest level in over four years,” the National Association of Automobile Manufacturers of South Africa (Namsa) said in a statement. New car sales in June stood at 22 861, down 7 964 vehicles or 25,8 per cent from the 30 825 cars sold during June last year, it said.Namsa attributed the slump in the new car market to tight monetary conditions which have “continued to weigh on consumer spending.””For the balance of 2008, in the domestic market, new vehicle sales would remain under severe pressure as a result of the cumulative effect of interest rate rises, inflationary pressures, high levels of personal debt and a slowdown in economic activity.”Most of the world’s major vehicle manufacturers are represented in South Africa, the continent’s economic powerhouse.Nampa-AFPNew car sales in June stood at 22 861, down 7 964 vehicles or 25,8 per cent from the 30 825 cars sold during June last year, it said.Namsa attributed the slump in the new car market to tight monetary conditions which have “continued to weigh on consumer spending.””For the balance of 2008, in the domestic market, new vehicle sales would remain under severe pressure as a result of the cumulative effect of interest rate rises, inflationary pressures, high levels of personal debt and a slowdown in economic activity.”Most of the world’s major vehicle manufacturers are represented in South Africa, the continent’s economic powerhouse.Nampa-AFP