… As industry dismal performance continues
By Hilary Mare
WITH elections next year and holiday season approaching in December, a slight uptick in the volume of vehicles’ sales is expected following a subdued year, Simonis Storm Securities (SSS) has said.
In its monthly vehicle sales report for the August, Simonis Storm Securities further highlighted that the year will remain tough for car dealers due to the fact that the economy has failed to see any substantial growth.
“The year continues to be tough year for the vehicle industry and we do not see this picture reverting over the short term, however, with elections next year and holiday season approaching in December, we expect a slight uptick in the vehicle numbers. We do not foresee spectacular jumps in the units of new vehicle sales in the near future as the economy fails to continue delivering required growth rates,” Simonis Storm Securities said.
Vehicle sales decreased by 11.1 percent month-on- month (m-o-m) in August 2018, following a 5.3 percent growth rate in the prior month.
However, on an annual basis, vehicle sales contracted by 3.0 percent to 1 061 units in August 2018 compared to 1094 units in the prior year.
“The drop is ascribed to a 30 percent decline in passenger vehicles and a 45.2 percent decline in the medium commercial vehicles,”
The Ford brand has a market share of 5.7 percent of the total new vehicle sales but declined by 25.9 percent m-o-m to 60 units in August 2018. This followed a 13.8 percent decline in the prior month.
The Toyota brand has a 37.1percent market share of the total vehicle sales m-o-m but declined by 25.2 percent to 394 units in August 2018 following a decline by 13.7 percent in the prior month.
YTD vehicle sales is down 10.5percent to 8 194 units compared to 9 157 units in the prior year.
“We expect vehicle sales to decline by 12.8percent to 11 605 units in 2018,” concluded Simonis Storm Securities.
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