Johannesburg, South Africa, 21 August 2024 – The National Automobile Dealers’ Association (NADA) is encouraged by the recent decline in South Africa’s annual consumer price inflation to 4.6% in July, the lowest level in three years. This drop, combined with the recent decrease in fuel prices, signals a positive economic shift expected to benefit consumers and businesses nationwide.
“For consumers, a potential interest rate cut by the South African Reserve Bank in September could lead to more affordable financing options for purchasing vehicles. Lower interest rates would reduce monthly installment costs, making it easier for South Africans to invest in new and used vehicles. This, coupled with lower fuel prices, could significantly enhance the overall affordability of vehicle ownership,” said Brandon Cohen, Chairperson of NADA.
For businesses, particularly within the automotive sector, the anticipated interest rate reduction would provide a much-needed boost to consumer confidence. Lower borrowing costs could stimulate demand, encouraging more consumers to consider purchasing vehicles, which in turn would drive sales and support the growth of the industry. Businesses that rely on fleet vehicles would benefit from reduced operating costs, thanks to lower fuel prices and more favourable financing terms.
“This positive economic outlook could lead to increased activity within the automotive market, creating opportunities for dealerships to expand their customer base and improve sustainability. NADA remains optimistic that these developments will contribute to a more vibrant and resilient automotive industry in South Africa,” added Cohen.
NADA will continue to advocate for conditions supporting consumers and businesses, ensuring that the automotive sector remains a key driver of economic growth.
