June saw South African new vehicle sales plunge by 14% versus the same month last year, to settle at 40,072 units, according to Naamsa - The Automotive Business Council.
According to the National Automobile Dealers Association (NADA), the delayed announcement of the government of national unitys cabinet had an impact on local business and consumer confidence, with many delaying big-ticket purchases such as vehicles.
However, NADAs chairperson, Brandon Cohen welcomed the historic government of national unity (GNU), stating that this approach to governance will hopefully bring much-needed stability to the country.
Naamsa expressed optimism that economic conditions will improve in the second half of this year, as the markets appear to have responded positively to the new cabinet announcements.
The association said the continued absence of load shedding, lower fuel prices and likely interest rate cuts later in the year would see economic prospects steadily improving.
