PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

A monthly economic indicator showing the number and value of new motor vehicles sold in South Africa. The National Association of Automobile Manufacturers of South Africa (NAAMSA) produces the figures for export and domestic sales of new vehicles. These figures are important because the motor manufacturing industry contributes 7,5% to gross domestic product (GDP) and because the local sales are a good indication of consumer demand and the state of the economy. Buying a new car is something that both consumers and businesses can generally put off if the economy is bad and money is tight. A high level of new car sales shows that the economy is buoyant. Vehicle exports are impacted by the strength of the rand and the sector can also be impacted by local union action. Vehicle exports are encouraged by various tax incentives, especilly where large volumes of exports are achieved.

Edit Glossary Term