South African auto sales up more than 35% - Car Rental News
South African auto sales up more than 35%
Car Rental News - 03/06/2010
Sales of vehicles in South Africa are up by 35.3%, thanks to economic growth and the World Cup.
Sales of cars and trucks are booming in South Africa, thanks to an increase in consumer spending triggered by interest-rate cuts, and a surge in car hire activity brought on by the upcoming FIFA World Cup.
South African industry organization the National Association of Automobile Manufacturers announced that vehicle sales expanded last month to 39,176. The upswing follows South Africa’s Reserve Bank cutting its benchmark interest rate on 25 March by half a percentage point, down to 6.5 per cent. That was the seventh cut in the benchmark rate since December of 2008, and it appears to have helped trigger increased spending by consumers.
Carmakers are also enjoying the benefits of increased demand from car hire companies, who are gearing up to support an influx of visitors for the FIFA World Cup tournament, which kicks off on 11 June and runs for a month.
South Africa is the continent’s biggest economy. Economic activity expanded by 4.6 per cent, year-on-year, in the first quarter of the year. Domestic consumption is being driven by lower interest rates and an improving global economy is driving increased foreign demand in South Africa’s manufacturing and mining sectors. In May, exports of vehicles were up 77.9 per cent from the year before.