New-vehicle market in sorry state despite a June sales hike

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With June sales double that of May and 5,000% that of April, the sector still expects a full-year market decline of between 20% and 50%

New-vehicle sales more than doubled in June from May and were more than 5,000% better than April. But even the most determined good-news merchant will find it hard to deny that the local market is in a sorry state.

In May, as the lockdown eased and motor dealerships started to reopen, the number grew to 12,932. In June, the first full sales month since February, this leapt to 31,867, including 19,624 cars. To put this in perspective, however, the June market was 30.7% weaker than in the corresponding month of 2019.Low interest rates

Zhungu, who believes the market will shrink 30% this year, said low interest rates are encouraging some vehicle buyers despite the economic recession and low business and consumer confidence.

 

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