The South African auto market has experienced a devastating economic slump, but the country’s auto dealers still have plenty of work to do.
According to the South African Automobile Association, the sector had a revenue of $1.1 billion in 2014, and the sector has seen a sharp decline in 2015 due to a combination of factors.
According the SAAA, the country saw an increase in vehicle sales in 2015 and is still on pace to increase that figure in 2016.
The SAAA has forecast that sales of new vehicles, mainly to consumers, will increase by 9.5 percent in 2016 compared to the previous year, while vehicle sales of older vehicles will decrease by 4.3 percent.
In addition, sales of small-format and hybrid vehicles will increase in 2016 by 8.2 percent and 9.7 percent respectively, compared to 2015.
However, the SAAC says that the majority of this increase will be due to the entry of new cars into the market.
“It is not surprising that the market has seen such a sharp reduction in volume, but it is also disappointing to see a significant drop in sales.
This means that the SAAs overall growth target for the market is unlikely to be met for the foreseeable future,” the SAAG said in a statement.
The SAAC also pointed out that in recent years, the number of new vehicle sales had declined due to poor fuel economy and a sharp drop in vehicle quality.
This has forced the auto industry to focus more on the delivery of quality vehicles rather than on sales of vehicles that are too expensive or too old.
The South African government recently announced a plan to introduce a 20 percent discount on fuel for cars purchased between February 2018 and January 2019, in addition to a 50 percent discount for all vehicles purchased from January 2019.
However there are concerns about whether this discount will be extended to all cars.