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South Africa's latest motor trade sales numbers
Date: 23 July 2018 Category: Economics |
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In this update we take a look at the latest motor trade sales as published by Statistics South Africa and find that South Africans spend more on fuel each month than they do on buying new cars. With fuel making up almost 30% of total spending in the motor trade industry every month.
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South Africa's spend more on fuel than on new cars
The line chart below shows the relative contribution of various categories in the motor trade sales industry to total motor trade spending, and as the graphic shows, more money is spent in South Africa each year on fuel than what is spent on new vehicles. And with record high fuel prices we are sure the relative contribution of fuel to total spending in the motor trade sales sector is sure to increase even further.
What the graphic shows is that for evert R100 spent in the motor trade sector in South Africa, currently R27.94 of each R100 spent goes towards fuel, with R26.41 out of every R100 spent in the sector being spent on new vehicles. This is however not a uncommon occurrence in South Africa, during the financial crises fuel prices skyrocketed and new car sales plummeted as people cut back on their spending. Big declines in crude oil and fuel prices in 2015 and 2016 meant the gap between what was spent on fuel and new cars narrowed (thanks to the lower fuel prices and a recovery in economies across the world).
But the latest fuel price increases and lack luster economic growth currently in South Africa will see the gap widen again between the total value spent on fuel compared to total value spent on new cars. The summary below shows the average monthly value spent on all the categories shown in the line chart above so far in 2018:
Thus so far in 2018, South Africans spend on average R14.76 billion on fuel, and just over R14 billion a month on new vehicles. Total spending in the motor trade industry per month so far in 2018 has average R52.95 billion a month.
But the latest fuel price increases and lack luster economic growth currently in South Africa will see the gap widen again between the total value spent on fuel compared to total value spent on new cars. The summary below shows the average monthly value spent on all the categories shown in the line chart above so far in 2018:
- Fuel: R 14 756 000 000
- New vehicles: R 14 030 800 000
- Used vehicles: R 9 866 400 000
- Accesories: R 9 452 000 000
- Workshop: R 3 049 800 000
- Forecourts/convenience stores: R 1 791 200 000
- Total: R 52 946 600 000
Thus so far in 2018, South Africans spend on average R14.76 billion on fuel, and just over R14 billion a month on new vehicles. Total spending in the motor trade industry per month so far in 2018 has average R52.95 billion a month.