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Vehicles sales fail to kick-start into motion

1 June 2020 6:59 PM
Tags:
Economy
Car sales
vehicle sales
Lockdown
COVID-19
auto industry
auto trade

As expected, the total lockdown that was in force resulted in almost zero vehicle sales.

Before lockdown, manufacturers were already predicting a decline in annual sales due to a shrinking economy.

A lot of businesses have also suspended buying cars.

The Money Show spoke to Michael Mabasa from the National Association of Automobile Manufacturers of South Africa, about this and other woes - such as dealing with export stock.

We were in a very very very proper lockdown - we did not produce vehicles, we did not export, we did not import, we did not sell...

Michael Mabasa, Executive Director and CEO - National Association of Automobile Manufacturers of South Africa

We did have some stock but vehicles have become bespoke commodities; a lot of customers specify 'I want a sunroof'... while there is obviously a number that we produce that people walk into a dealership and pick up from the floor, people are changing their buying patterns - when they want a brand new car they want the car to have certain extras.

Michael Mabasa, Executive Director and CEO - National Association of Automobile Manufacturers of South Africa

From an export perspective he said the levels of lockdown in different countries have to be considered before sending shipments.

We have alreday started but the complication that we have is we need to communicate to the countries where these vehicles are going...not all countries have lifted their lockdowns...

Michael Mabasa, Executive Director and CEO - National Association of Automobile Manufacturers of South Africa

Remember we are currently exporting to 161 different markets around the world and before any ship leaves we have to make sure that shipment would be able to reach their destination and offload on time.

Michael Mabasa, Executive Director and CEO - National Association of Automobile Manufacturers of South Africa

LIsten to the sound clip below.

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1 June 2020 6:59 PM
Tags:
Economy
Car sales
vehicle sales
Lockdown
COVID-19
auto industry
auto trade

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