2016 a bad year for car sales
A total of 1 066 vehicles were sold in December, a 19.1% month-on-month drop from the 1 317 vehicles sold in November, and 32.7% lower than December 2015 when 1 583 vehicles were sold.
For the year 2016, 16 598 new vehicles were sold, down 21.9% from the 21 246 vehicles sold the previous year. Vehicle sales have been lower than both 2015 and 2014, but still slightly ahead of 2013 level, according to IJG Securities
“Vehicle sales have been contracting on a year-on-year basis since mid-2015. The slowdown has been felt in both passenger and commercial vehicles, with passenger vehicle sales down 28.3% year-on-year and commercial vehicle sales down 35.4%.
“Within the commercial vehicle segments the light commercial category, which makes up the bulk of sales, has decreased by 32.2% year-on-year, while medium commercial vehicles sales have decreased by 28% year-on-year and heavy commercial vehicle sales have decreased by 76.4% year-on-year,” IJG said.
Passenger vehicle sales decreased by 17.8% month-on-month to 440 vehicles in December, while commercial vehicles sales decreased by 19.9% month-on-month to 626. This brings the total number of passenger and commercial vehicles sold in 2016 to 7 006 and 9 592 respectively. Of the 9 592 commercial vehicles sold, 8 838 were classified as light, 277 as medium and 477 as heavy commercial, IJG found.
In 2016 Toyota and Volkswagen dominated the passenger vehicle market based on the number of new vehicles sold. Toyota and Volkswagen claimed 29% and 28% of the market respectively. They were followed by Ford at 7% and Mercedes at 5%. The rest of the passenger vehicle market remains very fragmented, data showed.
Said IJG: “2016 was not a particularly good year for new vehicles as December numbers brought the year to a disappointing close. The slowdown was driven by two main factors. Firstly, the reduction in government spending had a direct and indirect effect on the demand for new vehicles. Both direct orders from government and the weaker economic environment have reduced the demand for capital goods. Secondly, higher interest rates and amendments to the Credit Agreement Act have reduced the availability of credit used to purchase these capital goods. “We expect the slowdown to continue into 2017. The full effect of interest rate increases normally takes 18 to 24 months to filter through to all areas of the economy. Additionally, lower government spending on capital expenditure should also put pressure on vehicle sales for the foreseeable future.”
STAFF REPORTER
For the year 2016, 16 598 new vehicles were sold, down 21.9% from the 21 246 vehicles sold the previous year. Vehicle sales have been lower than both 2015 and 2014, but still slightly ahead of 2013 level, according to IJG Securities
“Vehicle sales have been contracting on a year-on-year basis since mid-2015. The slowdown has been felt in both passenger and commercial vehicles, with passenger vehicle sales down 28.3% year-on-year and commercial vehicle sales down 35.4%.
“Within the commercial vehicle segments the light commercial category, which makes up the bulk of sales, has decreased by 32.2% year-on-year, while medium commercial vehicles sales have decreased by 28% year-on-year and heavy commercial vehicle sales have decreased by 76.4% year-on-year,” IJG said.
Passenger vehicle sales decreased by 17.8% month-on-month to 440 vehicles in December, while commercial vehicles sales decreased by 19.9% month-on-month to 626. This brings the total number of passenger and commercial vehicles sold in 2016 to 7 006 and 9 592 respectively. Of the 9 592 commercial vehicles sold, 8 838 were classified as light, 277 as medium and 477 as heavy commercial, IJG found.
In 2016 Toyota and Volkswagen dominated the passenger vehicle market based on the number of new vehicles sold. Toyota and Volkswagen claimed 29% and 28% of the market respectively. They were followed by Ford at 7% and Mercedes at 5%. The rest of the passenger vehicle market remains very fragmented, data showed.
Said IJG: “2016 was not a particularly good year for new vehicles as December numbers brought the year to a disappointing close. The slowdown was driven by two main factors. Firstly, the reduction in government spending had a direct and indirect effect on the demand for new vehicles. Both direct orders from government and the weaker economic environment have reduced the demand for capital goods. Secondly, higher interest rates and amendments to the Credit Agreement Act have reduced the availability of credit used to purchase these capital goods. “We expect the slowdown to continue into 2017. The full effect of interest rate increases normally takes 18 to 24 months to filter through to all areas of the economy. Additionally, lower government spending on capital expenditure should also put pressure on vehicle sales for the foreseeable future.”
STAFF REPORTER
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