Monthly car sales in South Africa have dropped for the first time in four years as higher interest rates dampened down demand.
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New car sales in February reached 32,319 units a drop of 0.25% on last year’s level.
The National Association of Automobile Manufacturers of South Africa (Naamsa) said that price increases, high debt levels and consumer demand adjusting to interest rate rises, were responsible for the drop.
However, Naamsa also reported that commercial vehicle sales were up and overall vehicle sales reached 52,589 units – 4.9% ahead of last year.
The recent ‘positive, confidence building budget’ was expected to support savings, investment and future economic growth and would therefore positively influence new vehicle sales, Naamsa added.
South Africa’s new vehicle market reached a record 714,340 vehicles in 2006, some 15.7% ahead of the previous year.
