MISA delighted with industry growth, but urges Government to step-up

18 May 2022

MISA, the Motor Industry Staff Association, is delighted with the unexpected positive growth in the retail motor industry’s vehicle sales, but warns against Government’s announced long solutions to the drastic fuel price increases, to protect the dire economy.

Martlé Keyter, MISA’s Chief Executive Officer: Operations, says the Union reminded Mr George Lekorotsoana, Chief of Staff to the Minister of Mineral Resources and Energy, Gwede Mantashe today, that Government’s temporary reduction in the general fuel levy ends on 31 May 2022.

This is bound to further negatively impact South African households.

South African’s are struggling to make ends meet with persistent load shedding, the impact of Russia’s invasion in the Ukraine, the looting in Gauteng and KwaZulu-Natal last year, the impact of the disastrous floods in KwaZulu-Natal over Easter and the sharp increase in new Covid-19 infections, says Keyter.

Mantashe has yet to respond to MISA’s request on 11 March 2022 to be included as a stakeholder in the review of the pricing methodology for petrol.

“Statistics SA today announced that the annual consumer price inflation remains unchanged at 5,9% in April 2022, for a third time in five months.

“The mid-month data from the Central Energy Fund shows that the petrol price could increase by as much as R1.98 per litre in May. Diesel is showing an under-recovery of between R1.60 and R1.63.

“These are factors the South African Reserve Bank (SARB) will take into consideration when it is expected to raise interest rates for the fourth consecutive meeting, with 50 basis points (bps), to 4.75%,” says Keyter.

According to TransUnion’s SA Consumer Credit Index | Q1 2022 there is a significant weakening in the real purchasing power of households. Real household income growth has been trending lower since 2020. Power outages tending to reduce retail volumes.

The National Association of Automobile Manufacturers of South Africa (Naamsa) announced that sales outperformed expectations in the first quarter of 2022, with aggregate new vehicle sales recording an impressive increase of 18,0% compared to the corresponding quarter in 2021.

“According to the statistics it seems that there is no reason for concern now, but the reality is that dealerships are sourcing stock nationwide to sell to consumers. There is a stock shortage due to the domino effect of events. Just Toyota lost 45 000 units due to the impact of the floods at its Prospecton Plant in Durban.

“MISA represents 54 000 members in the retail motor industry who is dependent on motor vehicle- and component sales, vehicle services and repair work. As a responsible trade union MISA wants to help wherever we can to protect jobs in the motor retail industry,” says Keyter.

Issued on behalf of MISA by Sonja Carstens, Media, Liaison and Communication Specialist.

For MISA Press Releases, phone Carstens on 082 463 6806 or email Sonja.Carstens@ms.org.za.