However, light commercial vehicle sales had held up well. As expected, new vehicle exports rebounded quite sharply during the month.

Overall, out of the total reported industry sales of 40 390 vehicles, an estimated 91.1 percent represented dealer sales, four percent represented industry corporate fleet sales,  3.1 percent represented the vehicle rental industry and 1.8 percent to government.

The new car market continued to experience pressure in April, registering a decline of 13.2 percent compared to April last year.

New light commercial vehicles, bakkies and mini bus sales reflected a marginal decline of 0.1 percent compared to the same period last year.

Medium commercial vehicle sales showed a sharp fall of 24.3 percent and heavy trucks and buses also showed a decline of 5.3 percent compared to the corresponding month last year.

New vehicle exports during April registered a substantial improvement, rising by 39.2 percent this year. With further reductions in vehicle imports because of the lower domestic sales, and the expected growth in vehicle exports, the industry should continue to positively contribute to South Africa’s current account of the balance of payments.

Based on the industry’s general outlook and prevailing macro-economic conditions, the remainder of 2016 is likely to have a continued effect on subdued economic growth and pressure on consumers’ disposable income.

The possibility of further interest rate hikes would further pressurise consumers and businesses at a time of rising retrenchments across a number of sectors. New vehicle price increases are expected to be above inflation, estimated between 12 and 15 percent plus, for the year. A major source of encouragement is the projected higher export numbers with 2016 export sales expected to expand to around 360 000 units.