Wesbank predicts two rate increases within next six months
This may well create the dynamics that will dictate a revamp of current financing models.
The economy is taking strain, and supply shortages persist but will improve, also resulting in lower shipping costs. This is the opinion expressed by Wesbank’s CEO Ghana Msisbi.
He continues to predict stable growth by 2024 coupled with improving component supplies once China reopens its manufacturing plants.
“The improving global and local economic situations will be beneficial in improving vehicle affordability, but locally there are calls from consumers and industry commentators for the government to cut duties and taxes to improve affordability. However, the government’s finances are currently so constrained that it will be hard stretched to make these cuts. I believe what is needed are infrastructural projects that will not only boost the economy but also create jobs and much-needed employment. This, in turn, will mean more people paying tax to grow the fiscus.”
His sentiments support the notion that new energy vehicles (NEVs), that require expensive batteries, will create a new world for vehicle finance. The latter may well be in separate financing for the car without the battery and then financing the battery only.
“I am the quintessential optimist. A case study of South Africa over the past 30 years will demonstrate the resilience of South Africans. Against all odds – and there have been plenty of challenges in this time – we will pull through together. We have seen this as we recover from the Covid-19 pandemic and will do so as we engage with major transitions in the spheres of NEVs and a transforming automotive industry.”
Source: Wesbank/MotorPress
