The Financial Gazette reports that South African new vehicle sales rose modestly in August, helped by VIP orders associated with the United Nations Earth Summit.
The National Association of Automobile Manufacturers of South Africa (NAAMSA) reported that August vehicle sales rose to 30,525 units against 29,777 in August last year – a 2.5% gain.
“Continued relatively resilient market demand and special factors such as orders for the World Summit on Sustainable Development contributed to new passenger car sales,” NAAMSA director Nico Vermuelen said.
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Analysts say that the recent further weakening of the rand will build pressures for price increases, which could encourage further pre-emptive buying by consumers. However, any increase to interest rates to support the currency would have an adverse impact in demand.
