REDUCING VEHICLE MANUFACTURING COSTS

Before the 30% decline of the auto-motive market in 2020 as a result of the COVID-19 pandemic, the market shares of the established premium brands – traditionally higher in SA than many markets – had already begun to decline. Simultaneously, shares of low-to mid-priced products, many offering excellent standard feature levels, have increased significantly.

SA MARKET CHANGES

Annual sales were constant at around 360 000 units or so in the years before the pandemic-induced slump in 2020, so one could be forgiven for not immediately recognising the real change in the SA car market – the buydown trend – which continues today, even as the market recovers. Reductions in disposable incomes have forced buyers into lower-priced vehicles. Downsizing is not practical for all. Many shift their priority from status and luxury to similarly sized but more affordable alternatives to