Loading...
See More

Wesbank bullish on 2011 vehicle sales

Mar 28 2011 12:23 Sapa

Related Articles

Wesbank unit denied licence

Wesbank eyes Brazil

Wesbank to leave Australia

FutureFin, Wesbank part ways

Wesbank gets continent flying

WesBank banks on Tracker

 
Johannesburg - Vehicle sales are likely to increase by 15.2% to 567 850 units in 2011, Wesbank said on Monday.

"If one plots vehicle sales against interest rate movements over many years, we have a minimum of seven growth quarters ahead of us," said Wesbank chief executive Brian Riley.

The group was particularly optimistic over the continued improvement in passenger vehicle sales for the year.

"The buy-down will continue with the higher LSM (living standards measure) segments leading the way. We suggest that passenger vehicle sales will be up 15% on the back of a strong rand, plenty of new models and a shortage of late model used cars."

Sales in light commercial vehicles were also expected to strengthen. Medium, heavy and extra heavy vehicles would continue to recover at 20%, 15% and 30% respectively.

Growth on the sale of busses was expected to fall by 30%, Riley said.

The structural and rational part of the South African economy was geared for growth, a key reason why the company was confident at its outlook for the sector in 2011.

"Capital inflows remain healthy, while interest rates remain low with a 0.5% increase probable towards the back end of the year. Corporate profits are generally healthy with corporate listings and activity on an upward trend."

The increase in sales predicted for 2011 was a "return to par" after the market over-corrected in 2009.
wesbank  |  vehicle sales  |  vehicle finance
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

BMW drift battle: M235i vs. speedway bike

Watch this insane drift contest with four-times dirt-track World champion Karl Maier riding a speedway bike against a BMW M235i.

 
 

Men24.com

Everyday struggles of naturally skinny guys
And this year's Miss Bumbum title goes to...
How to maintain your mo, bro
Hottie of the day: Colette

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...