Car sales still hampered by stock shortages
Sales are still a way off the figure achieved in March, when 43428 vehicles were retailed through the dealer channel.
The total automotive dealer sales counter for the month of May stopped on 38344 units, compared to the 35616 vehicles sold in the month of April. This represents a 7.6% improvement, albeit with April being a soft month due to public holidays.
Although this is an improvement, sales are still a way off the figure achieved in March, when 43428 vehicles were retailed through the dealer channel.
“With interest rates remaining at an all-time low, it is currently more affordable to finance a new vehicle, however continued stock shortages and the resulting rising prices are really hampering market recovery,” says the CEO of Motus Retail and Rental SA, Corné Venter.
Hyundai Automotive retailed 2507 vehicles through the dealer channel, compared to 2344 in April, placing them convincingly in third place in the passenger vehicle segment. A big contributor to this growth was the introduction of the i20, which went on to retail 658 units despite being launched mid-way through May.
For the month of June, pre-owned retailers expect a similar sales performance. Factors such as a public holiday in the middle of a week and rising Covid-19 infections all contribute to a challenging trading environment.
Motus Toyota dealers report that new vehicle stock remains an issue, even for locally manufactured models. Whatever comes in is sold almost immediately and clients are not always able to get the vehicle in the specification that they originally wanted.
“Although dealer sales have recovered nicely when we look back over the past 12 months, it has not been without its challenges. The continued stock shortages of new vehicles are a real issue and is of course driving up the demand for pre-owned vehicles. The knock-on effect is that high-quality pre-owned vehicle stock is increasingly difficult to come by and prices are very often well above market value. The tightening of Covid-19 restrictions is also expected to damper consumer enthusiasm,” concluded Venter.
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