General Motors South Africa (GMSA) remains a firm favourite amongst South African car buyers, coming in fourth in the May NAAMSA sales results. With three consecutive months of increased market share, at a dealer sales level.
GMSA sold a total of 3 290 units at NAAMSA level, recording the second best dealer Market share for Chevrolet, Opel and Isuzu this year. Notable performers for GMSA in May were the Chevrolet Cruze, Chevrolet Spark, Opel Corsa, Isuzu KB, and Chevrolet Utility. The newly launched, European Car of the Year; Opel Astra, in just two months has outsold total Astra hatch sales for the full year of 2015.
The total industry volume of 42 907 units sold in May came in below expectations, 10.3 percent down on May 2015 and is unlikely to improve as expected fuel and other consumer goods price increases continue to affect consumer outlook and disposable income.
Year to date industry volumes are down 9.8 percent with passenger sales taking the biggest knock with a 12.9 percent decline while commercial vehicles sales remain resilient, 11 percent up on the same period.
The decline in sales is due mainly to the pressure felt by private as well as corporate buyers in response to the current economic situation. Looking at the decline rate for new vehicle finance applications in May 2016 versus the same period last year, it’s quite clear that car buyers are feeling the crunch.
“What is interesting is that we are beginning to see a shift in consumer buying behavior with more traffic heading towards our G2 certified pre-owned dealer network, as consumers look for an affordable alternative to new vehicles. Our new car applications are down 18% versus last year while used applications are up 19%,” says Brian Olson, Vice President Vehicle Sales, Service and Marketing for GM Sub-Saharan Africa.