South Africa Autos Report - Business Monitor International - Industry Reports

South Africa Autos Report

South Africa Autos Report - Business Monitor International - Industry Reports
South Africa Autos Report
Published Oct 01, 2016
36 pages — Published Oct 01, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

Passenger vehicle (PV) sales continued to contract in the first half of ---- as consumers are faced with rising costs. ...This will result in a negative feedback loop within the economy with private final consumption growing at a subdued -.- in ---- and an annual average of -.- over the --------- forecast period. Although the Budget Speech in February this year erred on the side of caution by not increasing personal taxes while attempting to implement a budget geared towards fiscal consolidation, the increase in indirect taxes such as the increase in the fuel levy and a newly imposed tyre levy will reduce passenger vehicle sales. The consumer will be squeezed further by high interest rates imposed by SARB to fight inflation. ...The consumer will be squeezed further by high interest rates imposed by SARB to fight inflation. Although our Country Risk team now forecast the interest rate to remain unchanged at -.- over the remainder of ---- because of the developed world s shift towards a looser monetary policy strengthening the rand and

...Source: National sources, BMI Further factors keeping PV sales low include the current power crisis in South Africa and the effect that power shortages and load shedding will have on the economy. ...Source: National sources, BMI Further factors keeping PV sales low include the current power crisis in South Africa and the effect that power shortages and load shedding will have on the economy. Although our Power team expect the power supply to remain steady over the remainder of ----, the history of uncertainty which surrounds Eskom will remain a main threat to the economy. ...Strikes in the mining industry will hinder suppliers ability to supply the raw materials used in the vehicle manufacturing process. This will hold back GDP growth and vehicle manufacturer s ability to produce their desired vehicle quota.

...Total vehicle sales are forecast to contract by -.- in ----. We have revised down our previous forecast of -.- growth in ---- because of the weak economic outlook in South Africa reducing vehicle sales more than was previously expected through H---. Total vehicle sales contracted by -.- in ---- and the contraction will continue into ----. The economic headwinds faced by the economy will continue applying pressure to the automotive market over our five-year forecast period and as a result we forecast total vehicle sales to contract at an annual average of -.- to ----. There remain a number of reasons behind our increased bearishness towards the South African autos market, which include the following reasons: Rand weakness is dramatically increasing the cost of imported cars. ...

  
Source:
Document ID
1749-0170
Country
Industry
Format:
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "South Africa Autos Report" Oct 01, 2016. Alacra Store. Dec 10, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/South-Africa-Autos-Report-2026-2650>
  
APA:
Business Monitor International - Industry Reports. (2016). South Africa Autos Report Oct 01, 2016. New York, NY: Alacra Store. Retrieved Dec 10, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/South-Africa-Autos-Report-2026-2650>
  
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