The intent of consumers to purchase a new vehicle has increased in the past two months, according to the latest consumer Vehicle Purchase Intent (VPI) index compiled by Deloitte.
The VPI revealed that the index increased from 92.33 on a 100-point scale in April this year to 95.82 in May and still further to 95.82 in June 2022.
This followed the VPI deteriorating from 102.21 in February this year to 87.10 on March 30, 2022.
Dr Martyn Davies, the Africa Automotive Industry Leader at Deloitte, said 23% of respondents cited “new vehicles on market have features I want now” as their top driver for future vehicle purchase intent.
The other significant drivers of future vehicle purchase intent highlighted by Deloitte are:
The Deloitte VPI index is a monthly proprietary measure of forward vehicle demand intent calculated and based on the percentage of consumers who indicate they are planning to acquire a vehicle in the next six months.
Deloitte listed a number of key factors influencing the VPI trend, both positively and negatively.
The firm said the positive trends were:
The negative trends were:
In terms of the concerns of consumers about their financial capacity going forward:
Deloitte said there were a number of key behaviours that were impacting mobility.
It said the average daily driving distance declined to 48 km but the percentage of consumers planning to drive more going forward increased to 24%.
However, the percentage of consumers who plan to use public transport more going forward remained static at 15% while the number of days of the week people were working from home declined to 2.8 days.
The National Automobile Dealers’ Association (NADA) says it is reassuring to see a silver lining in the new vehicle market.
The performance of the new vehicle market last month was distorted by several one-off events in July 2021.
A completely new high-tech body shop has been constructed at the Ford Motor Company of Southern Africa’s plant as part of the company’s R15.8 billion investment in its assembly plant operations in Silverton, Pretoria.