Meameno Johannes, an economist at the brokerage and investment advisory firm observed that the uptick was mainly supported by light commercial vehicles which increased by 110 units or +27.7% in May.
“This comes after light commercial vehicle fell 31% in April. Despite the monthly increases observed in May, vehicles sales remain below the 10-year average of 1240 units,” says Johannes.
New vehicle sales stood at 4805 units at the end of May 2018, lower than 5536 units recorded over the same period in 2017 - a 13.2% decrease.
“To boost car sales, we have observed numerous special schemes such as the 6 months payment holiday and prime less 4% on new car sales.
“This is our view indicates the lack of spending by consumers in the new motor vehicle space and this is evident in the low instalment credit (-5.1% y-o-y).
“Tough economic conditions are set to prevail in the second half of 2018, putting more pressure on the motor vehicle industry,” says Johannes.