New data out this week showsthat car sales in South Africa declined for a fourth straight month in August, in a month where the rand hit its lowest ever mark against the US dollar.
Data on Tuesday showed sales fell by 8.2% to 55,055 units, having contracted 6.1% in July.
Data provided by Lightstone Auto, and the The National Association of Automobile Manufacturers of South Africa (Naamsa) showed that the VW Polo Vivo sold the most units in the country, ahead of a fierce battle in the ‘bakkie’ segment.
According to Reuters, the automotive industry’s contribution to GDP has slowed to around 7.5% in 2014 from around 12% a decade ago.
Exacerbating the industry’s woes, the South African Reserve Bank raised the repo rate to 6% in July.
Naamsa said that it expects the downward sales trend will continue in medium term amid declining business confidence and consumer sentiment.