How the motor retail industry is responding to COVID-19 headwinds
October is transport month, and we are taking a look at the conditions that the motor retail industry is operating under.
Tue, 13 Oct 2020 16:47:46 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Projected 30% drop in new vehicle sales and 80% decrease in workshops post-COVID-19
- Shift towards digital interactions and online sales due to pandemic
- Importance of reducing taxes on new cars to stimulate sales and support industry growth
The motor retail industry in South Africa is facing significant challenges as a result of the COVID-19 pandemic. Marcia Mayaba, CEO of Motor Retail at Barloworld, provided insights on the current outlook for the industry and the potential obstacles that lie ahead. Mayaba highlighted a projected 30% drop in new vehicle sales and an 80% decrease in workshops and parts businesses post-COVID-19. This represents a significant decline from previous sales figures, with 2020 forecasts expected to range between 360,000 and 380,000 units compared to the previous 450,000 to 500,000 units. The impact of the pandemic has been profound, reshaping consumer behavior and accelerating the shift towards digital interactions. Mayaba emphasized the importance of reducing taxes on new cars to stimulate sales and support the industry's contribution to the country's GDP. Collaboration between the industry and the government is crucial to developing a recovery plan that safeguards jobs and ensures the sustainability of the motor sector. While advocating for cost reductions, the industry remains committed to environmental protection and seeks a balance between economic recovery and environmental conservation.
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