Upbeat but cautious about the economy

Senior Vice President of Sales and Marketing at TSAM, Leon Theron, says the company’s marketing strategy is not just limited to new vehicle sales leadership. He recognised TSAM’s parts’ distribution division for shipping 1.4 million vehicle parts locally, while they sent more than 357 000 pieces outside SA’s borders in January.

“It’s no rocket science that our strong showing in the passenger segment has been bolstered by the new Corolla Cross, Urban Cruiser and Starlet, and we’re grateful that our consumers love these models. While we managed to match pre-Covid-19 figures in the first month of the year at TSAM, we remain cautiously optimistic about the 2022 economic outlook,” Theron expounds.

He notes that unemployment is still rife, and fuel hikes, as well as further spikes in interest rates, are likely to thwart consumer sentiment.

According to the National Association of Automobile Manufacturers of South Africa (naamsa): “In line with the moderate economic growth forecast for the country for 2022, the new vehicle market is expected to continue its gradual recovery to pre-COVID-19 levels, but at a slower pace.”

The South African Reserve Bank increased its benchmark repo rate by 25 basis points to 4% at its January 2022 meeting, as widely expected, due to increased inflation risks. This was the second increase since November 2021 as the Committee believes a gradual rise in the repo rate will be sufficient to keep inflation expectations well anchored, naamsa adds.

Theron concludes: “Retail conditions in South Africa are still far from ideal, but I am encouraged by the work ethic of Toyota dealers and the great courage they have shown in the last two years. We believe in the strength of our dealer network, the loyalty of our customers, the commitment of the entire TSAM workforce, as well as the quality of our products.”