Vehicle manufacturers expect improvement in 2021 sales

National Association of Automobile Manufacturers of SA, CEO Mikel Mabasa spoke with eNCA's Jeremy Maggs. Courtesy of #DStv403

JOHANNESBURG - Vehicle manufacturers say they expect an improvement in car sales this year following last year’s slump.

New vehicle sales plummeted close to 30 per cent in 2020 due to the crippling effects of COVID-19.

The industry contributes 6.5 per cent to the country’s GDP.

READ: Tesla delivered record number of cars in 2020

The National Association of Automobile Manufacturers of South Africa(NAAMSA) says it expects an improvement, though tough times still lie ahead.

NAAMSA Michael Mabasa said, "we are hopeful that this year, a lot of people this year, will look forward to a new procurement of vehicles."

"The second area that we are very hopeful about is about the rental business. If you recall that in 2020 a lot of our rental companies, which is the third-biggest customer for us across the industry, never bought brand new vehicles, in fact, they were depleting new vehicles."

"Now that people are back to travelling we are very hopeful that the rental companies will start fleeting again for 2021."

Source
eNCA

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