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Here’s what South Africa’s vehicle sales looked like in April 2021 Pritesh Ruthun © Provided by Independent Online (IOL)
JOHANNESBURG – “April new vehicle sales told an inspiring story of the South African motor industry’s resilience, while also providing a harsh reminder of the bleak outlook experienced a year ago,” says Lebogang Gaoaketse, the head of marketing and communication at WesBank Vehicle and Asset Finance.
With April 2020 sales essentially at a standstill as motor retailers were closed, the rejuvenated picture a year later, while reassuring, remains under pressure, he says.
According to the Automative Business Council (Naamsa), the new vehicle market grew 6.133.3% in April compared to April last year. However, the reality was a little more subdued when considering that April 2021’s 35 779 sales were 17.6% lower than last month – 7 649 units less than March.
Here’s why there’s a shortage of new cars in South Africa right now
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A combination of improved demand and an international shortage in parts has led to a shortage of stock of some new car models in South Africa.
This is primarily being driven by an ongoing global shortage of semi-conductors, or computer chips, which is impacting certain new models, said Mark Dommisse, chairperson of the National Automobile Dealers’ Association (Nada).
He added that the Covid-19 pandemic is still negatively impacting many of the countries that supply built-up vehicles and components to South Africa.
Major manufacturers, including Ford and General Motors, have had to halt production while awaiting new shipments of automotive-grade semiconductors from Taiwan and South Korea – chips that won’t even be manufactured for three to four months.