NADA Newsletter | The Dealers’ Voice | July 2021

We are halfway through the year, and we are tracking ahead of most industry forecasts, and this is encouraging. Total sales last month increased by 20.2% to 38 030 compared to June 2020, and total sales for the first half of 2021 are 40.1% higher than in the same period in 2020.

The fact that 86.3% of the 38 030 new vehicles sold in South Africa in June went through the retail dealer channels is a strong indicator of growing confidence in buying capital assets by both the business and consumer sectors of the market.

It is also encouraging to see the rental industry increasing its purchases as it accounted for 7.6% of total sales. This not only shows growing business confidence within this key economic indicator but also means that more vehicles will come into the used car market when the time comes to re-fleet.

The gradual recovery in retail sales continued in June, which is in line with industry forecasts, despite the growing impact of the COVID-19 pandemic on the daily lives of people.

However, as motor dealers in South Africa, we are realists and know it will be tough to keep up the sales momentum in July, particularly as key living costs such as electricity and water, fuel and municipal rates and taxes will be increasing in many instances.

During this time, we’re also dealing with the implementation of the Protection of Personal Information Act (POPIA), and the Competition Guidelines for the local motor industry.

This month’s newsletter is packed with interesting content. We hope that you will enjoy the read.

Please continue to be safe and implement the safety protocols within your dealerships as well as in your personal lives. Mask up, maintain social distancing and continue with all hygiene protocols.

Take care.