Political instability threatens South Africa's car market
Tag: South Africa market, South Africa car market
Summary: This was the consensus of panellists during a discussion on “Affordability, Choice and Demand: The road ahead for South Africa’s vehicle market” hosted by Standard Bank and Future Group yesterday.
Political instability is one of the biggest threats facing South Africa’s automotive market.
This was the consensus of panellists during a discussion on “Affordability, Choice and Demand: The road ahead for South Africa’s vehicle market” hosted by Standard Bank and Future Group yesterday.
However, the panellists were still bullish about new vehicle sales growth next year.
Derik Scorer, the chairman of the National Automobile Dealers’ Association (Nada), said the oil price and the country’s political stability were the biggest worries.
If the oil price increased significantly, it could adversely affect the ability of many people to enter the new car market and many people would downscale their purchases, he said.
Scorer said the industry depended heavily on political stability and stressed the importance of the country getting through the ANC’s national conference in Mangaung in December “with flying colours in the eyes of the world” and the JSE not taking “a big dip” like it did on Wednesday.
Brian Smith, the head of the fleet and pre-owned division at Renault South Africa, said political instability and the international perception of it was probably the biggest worry facing the industry.
Smith said he constantly received questions about the country’s instability from his European colleagues based at the parent company’s head office in Paris.
Keith Watson, the head of sales at Standard Bank vehicle and asset finance, said domestic instability and the instability in Europe and the rest of the world caused by the debt crisis were worrying.
Watson said that if the financial instability in Europe and the world did not continue to improve, it would lead to the domestic market being “battered”.