South African Vehicle Sales Drop for Fourth Time in Five Months

(Bloomberg) -- South African vehicle sales declined for the fourth time in five months in May.

Sales dropped 5.7% to 40,506 units, according to data from the National Association of Automobile Manufacturers of South Africa received by email Monday. Sales have dropped every month this year except April.

Key Insights

• Africa’s most-industrialized economy is struggling to gain momentum after the improvement in sentiment that followed President Cyril Ramaphosa’s rise to power turned out to be temporary.
• The statistics agency releases GDP data Tuesday, with the median estimate in a Bloomberg survey of 14 economists showing an expected 1.6% contraction in the first quarter from the previous three months.
• The auto industry says it accounts for about 7% of South Africa’s gross domestic product and has been one of the few highlights of a period of sluggish economic growth. Daimler AG’s Mercedes-Benz is investing 600 million euros ($671 million) in expanding its South African plant, it said in June 2018. Toyota Motor Corp., Ford Motor Co. and BMW AG are also building cars in the country, helped by a state-incentive plan.

--With assistance from Jacqueline Mackenzie.

To contact the reporter on this story: Ana Monteiro in Johannesburg at amonteiro4@bloomberg.net

To contact the editors responsible for this story: Rene Vollgraaff at rvollgraaff@bloomberg.net, Renee Bonorchis

©2019 Bloomberg L.P.