Motor Industry looks set to improve - 02 Oct 2009 12:49
The past year has been an ambiguous one for car markets in South Africa, noted TransUnion Auto Information Solutions CEO, Mike von Höne. While the new vehicle has been hit hard by the recession, looking to close 26 percent down on the previous years earnings, while used car markets look set to increase by 10 - 15 percent.
Von Höne shows that, despited the decline in new car markets, markets are recovering, however slowly. The basis for the slow turnaround? The worst of the recession, both locally and internationally (based on liquidation statistics), seems to be over. Despite the recovering economies of Germany, France and China, the US and UK markets growth will be slow – and South Africa’s right along with them.
Vehicle export from South Africa looks to be slow for 2010. The poor growth prediction is based on South African consumers trepidation which in turn is based on an uncertain economic outlook and poor borrowing capacity.
Despite this however, TransUnion’s market calculations were expected to be up by almost 15 percent on last year as a result of a buoying used car market. The ratio of used to financed vehicles has gone from 1.2:1 to 2.5:1.
This shift away from new to used cars is expected to continue, say TransUnion, especially if you consider that the three months of oversupply has stabilised with an increasing demand. While the news is good for car markets, insurers are experiencing a different take on the matter, as used cars are not compulsory to insure.
*Source ITINews.
The past year has been an ambiguous one for car markets in South Africa, noted TransUnion Auto Information Solutions CEO, Mike von Höne. While the new vehicle has been hit hard by the recession, looking to close 26 percent down on the previous years earnings, while used car markets look set to increase by 10 - 15 percent.
Von Höne shows that, despited the decline in new car markets, markets are recovering, however slowly. The basis for the slow turnaround? The worst of the recession, both locally and internationally (based on liquidation statistics), seems to be over. Despite the recovering economies of Germany, France and China, the US and UK markets growth will be slow – and South Africa’s right along with them.
Vehicle export from South Africa looks to be slow for 2010. The poor growth prediction is based on South African consumers trepidation which in turn is based on an uncertain economic outlook and poor borrowing capacity.
Despite this however, TransUnion’s market calculations were expected to be up by almost 15 percent on last year as a result of a buoying used car market. The ratio of used to financed vehicles has gone from 1.2:1 to 2.5:1.
This shift away from new to used cars is expected to continue, say TransUnion, especially if you consider that the three months of oversupply has stabilised with an increasing demand. While the news is good for car markets, insurers are experiencing a different take on the matter, as used cars are not compulsory to insure.
*Source ITINews.