According to National Association of Automobile Manufacturers in South Africa (Naamsa), the sale of new vehicles went down by 2.4% in December 2017. In December 2017 only 41,644 vehicles were sold out compared to 41,644 new vehicles in December 2016. Naamsa represents the vehicle dealership from Southern Africa. The countries include South Africa, Lesotho, Swaziland, Botswana, and Namibia.

Sales of passenger and commercial cars went down by 6.4% in December 2017. But there was an improvement in the sales of commercial vehicles and cars by 7.0%. Medium and heavy commercial vehicles remained constant throughout the year. South African sales export to other markets was recorded at 17,374 in December 20917. This was a deviation of 1,333 vehicles (7.1%) as compared to 18,707 exported vehicles in December 2016. The data excluded the sales to the Southern African Customs Union member states.

The decline was because of the replacement of the old models with the new one. There were no enough models as people waited for the introduction of VW Polo range in 2018. The total sales went up throughout 2017. It increases at 1.8% increase which was the first one after four years.

The improvement is because of the gain in light commercial vehicles and new cars sales. There was economic growth, and low level of consumers influenced the market. Increase in business confidence and pressure on consumer’s disposable income was vital. There was a marginal decline in interest rates in July. That affected the total. The total sales went up by 10,039 vehicles (1.8%). This was an improvement to 557,586 vehicles compared to 547,547 vehicles in 2016.

The car rental sector influenced the market by a bigger margin. It accounted for around 16% of new car sales in 2017. During the second half of the year, manufacturers and importers introduced incentives. This also affected the market in one way or the other.