What to expect from car sales in South Africa in 2021
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South Africa’s car dealers are cautiously optimistic about car sales in 2021, following the release of the November new vehicle retail sales figures by the National Association of Automobile Manufacturers’ of South Africa (Naamsa).
The total dealer retail sales figure of 33,547 units in November was 5% above the October figure, but still 3.8% lower than the sales achievement in November 2019, when 34,861 units were retailed.
Dealer sales equated to 85% of total sales in November 2020, with the rental market taking 8%, the government 3.9% and corporate fleets the remaining 2.8%.
“Even though the retail sales figures remained muted in November, which once again reminded us of the challenges facing the overall automotive industry in these times, the general feeling of dealers is that they are slightly more hopeful than they were a few months ago,” said Mark Dommisse, chairperson of the National Automobile Deale
Image: iStock
From 1 July 2021 consumers will have more choice when they buy a car, with servicing options being expanded to wherever owners want, without losing the warranties on their new vehicles. This is one of the provisions in the final Guidelines for Competition in the South African Automotive Aftermarket, which was drafted by the Competition Commission to increase consumer choice and participation by smaller companies. “These Guidelines are aimed at removing restrictions imposed by OEMs on car owners regarding service providers for service and maintenance, as well as replacement parts for vehicles according to international best practices. It will unleash.
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CompCom publishes guidelines expected to benefit consumers and small businesses in the sector. 00:03
The changes promote consumer choice and rights while aiming to make the market more competitive. Image: Moneyweb
Interventions by the Competition Commission to open up the automotive aftermarket are expected to result in far-reaching benefits for consumers and small, independent and historically disadvantaged service providers from July 1, 2021.
These benefits include:
Promoting consumer choice in the purchase of vehicle maintenance and service plans.
Promoting the rights of consumers to use original or non-original spare parts during the lifespan of their vehicle.
Removing original equipment manufacturer (OEM) restrictions in the sale and distribution of original parts.