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© Business Live MMXVI
© Business Live MMXVI

Rising prices help buffer automotive sector as unit sales plunge 13%

ECONOMIC NEWS - Oct 24th 2016, 15:06

RISING new-vehicle prices cushioned a 13% crash in units sold to a 2.3% drop in sales value, according to Statistics SA’s motor industry trade data released on Thursday. 

Stats SA’s monthly motor industry data is reported in rands and not adjusted for inflation. The National Association of Automobile Manufacturers of SA (Naamsa) reports new vehicle sales volumes.

Naamsa reported 30,350 new vehicles were sold in August, 13% less than the previous August’s sales.

Stats SA reported the motor industry sold R12.7bn worth of new vehicles in August.

Despite the 2.3% decline in new vehicle sales value from August 2015, the industry’s overall income grew 4.1% to R50.5bn, boosted by a 13.7% jump in used vehicle sales to R9.8bn.

Consumers buying older cars or keeping their cars for longer appear to have helped workshop income, which rose 11.8% to R3bn.

After used car sales, the industry’s biggest growth was accessories which rose 12.7% to R10bn.

The largest contributor to motor industry sales is fuel, which declined 3.5% to R13bn.

Garage convenience store sales rose 5.2% to R1.9bn.
© Business Live MMXVI  

Read more about: sales | rand | economy

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