SA Automotive Industry displays confidence in upcoming growth

Confidence, South African, automotive, sector, general, expectation, vehicle, sales, 2011Confidence in the growth of the South African automotive sector has shown a further improvement

Confidence in the growth of the South African automotive sector has shown a further improvement with a general expectation of approximately 567,000 vehicle sales in 2011 (an increase of 15 per cent) against 2010 sales of 492,956 units

Nearly one fifth of industry players expect the growth to rise by 20 per cent to 592,000 units this year. These were some of the key findings of a recent snap survey conducted by financial services firm KPMG at the launch of its 10th annual South African Global Automotive Executive Survey to automotive executives in Gauteng and Port Elizabeth.

“Some of the factors affecting growth in the local automotive sector include consumer confidence which has been buoyed by interest rate adjustments and pent-up demand due to the recent recession, and the fact that consumers are holding onto their vehicles for longer,” says Gavin Maile, KPMG Africa Automotive Industry Leader.

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