Post Pandemic Supply Challenges Drive Shift in Vehicle Purchasing Behaviour
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GUEST: Lee Naik, CEO of TransUnion Africa
Vehicle sales in South Africa dropped sharply in the first quarter of 2023 in the face of ongoing vehicle price inflation, declining consumer disposable income and negative consumer and business sentiment. TransUnion Africa figures show the number of financial agreements in the passenger vehicle market in Q1 decreased 12% year-on-year (YoY), with new car sales down 2.6% and used car sales down 17.7%.
What’s more, according to the information and insights provider, macroeconomic indicators suggest that there’s little respite for the embattled auto industry in the short term. Inflation climbed from 6.9% to 7.1% during the quarter, with used vehicle prices increasing from 7.9% to 8.1% in the same period. This trend is unlikely to reverse soon, with the current macroeconomic climate in South Africa of low growth rates, frequent power cuts, and decreasing disposable incomes making consumers and businesses more cautious, said Lee Naik, CEO at TransUnion Africa
Vehicle sales in South Africa dropped sharply in the first quarter of 2023 in the face of ongoing vehicle price inflation, declining consumer disposable income and negative consumer and business sentiment. TransUnion Africa figures show the number of financial agreements in the passenger vehicle market in Q1 decreased 12% year-on-year (YoY), with new car sales down 2.6% and used car sales down 17.7%.
What’s more, according to the information and insights provider, macroeconomic indicators suggest that there’s little respite for the embattled auto industry in the short term. Inflation climbed from 6.9% to 7.1% during the quarter, with used vehicle prices increasing from 7.9% to 8.1% in the same period. This trend is unlikely to reverse soon, with the current macroeconomic climate in South Africa of low growth rates, frequent power cuts, and decreasing disposable incomes making consumers and businesses more cautious, said Lee Naik, CEO at TransUnion Africa
