SA's automotive industry opens up for businessThe Department of Trade, Industry and Competition has published a Government Gazette, which details precise directions regarding the sale of cars and emergency automobile repairs during Level 4 lockdown. Photo by Kehn Hermano© from Pexels Significantly, car dealers are now allowed to sell both new and used cars while original equipment manufacturers (OEMs) and importers may wholesale new and used cars. Cars may also be imported and exported. Trade-in purchases, car lease scheme returns and the wholesale trading of used cars are also permitted. Phases There are three phases to get dealerships to operate at 100% capacity – and these are important to motorists and dealers alike.
In order to support the dealerships, roadworthy assessment and testing centres will open while the National Regulator for Compulsory Specifications (NRCS) will provide homologation services. George Mienie, CEO at AutoTrader, comments: “This directive is undoubtedly good news for motorists and the motor industry alike. Based on an AutoTrader survey, the financial well-being of a whopping 65% of vehicle-buying consumers in South Africa has been negatively impacted by the nationwide lockdown. Many (30% to be precise) are under pressure to replace their vehicle within the next four weeks. This is being reflected in a massive increase in online searches. The highest number of car searches in Level 4 period was recorded on 10 May; we recorded over 1,3 million searches on that day alone. In the last two weeks, enquiries to car dealers have risen by an astounding 69%. “Dealers, on the other hand, are under pressure to survive. Another particularly important factor is the decline in consumer finance approval rates. Some dealers are reporting that approval ratings have declined,” he reveals. “The situation is far from ideal. But the good news is that this directive is the best for both motorists and dealers,” Mienie concludes. |