South Africa
Prices of new vehicles increase─── 16:50 Fri, 23 Oct 2020
The price of new vehicles increased by more than the inflation rate for the second consecutive quarter and consumers are facing the prospects of the rate of increase rising further in coming months.
The latest TransUnion SA vehicle price index report revealed that new vehicle prices increased by 7.6% in the third quarter of 2020 from 3.3% in the corresponding quarter in 2019.
TransUnion Africa vice president of auto information solutions Kriben Reddy said the latest increase in new vehicle prices follows 10 quarters of vehicle price increases remaining below inflation and could herald a cycle of further increases.
Reddy stressed that new vehicle pricing in South Africa is not driven by demand. As around 70% of vehicles are imported, factors like exchange rates and tax duties play a big part in the price hikes.
Moneyweb
