Nico Vermeulen, Director at NAAMSA, has reviewed the medium and heavy commercial vehicle market segments for the remainder of 2017 and taken a smart look at 2018.
He says: ”NAAMSA anticipates that the following sales numbers for 2017 and 2018 could materialise, subject to certain provisos:
“One of the main challenges going into 2018 is to restore confidence on the part of Business and consumers…”
“One of the main challenges going into 2018 is to restore confidence on the part of Business and consumers. Leadership is urgently required to deal with the current socio-political instability in South Africa. Concerted steps are needed on the part of Business, Government and Labour to create a more investor-friendly environment as a means of boosting growth.
“Provided South Africa manages to avoid a further credit downgrade on 24th November, 2017 and provided the economic growth rate in 2018 picks up to about 1,2% from the expected 0,7% in 2017 – sales of medium and heavy commercial vehicles could improve by between 2,5% to 3,0% in volume terms in 2018.
“If the country does get downgraded, then South Africa faces the prospect of an economic recession and fairly substantial declines in new vehicle sales, including medium and heavy commercial vehicles.”