NEW AND PRE-OWNED vehicle distributor Combined Motor Holdings (CMH) Group, which yesterday posted robust interims, has projected tough economic conditions for South Africa in the next six months.
“Rising interest rates, and worsening power cuts, which have slowed the momentum of new vehicle sales, are set to continue to bring despondency to the economy,” the company said.
New vehicle sales were hampered by continued disruption to the supply chain due to a shortage of electronic chips, it said.
Also creating a drain on consumers’ disposable income was the surging petrol price.
“Ongoing, and more severe, load shedding has played havoc with business productivity, and necessitated costly investment in alternative power sources,” it added.
The South Africa Reserve Bank has successively hiked interest rates in the past 12 months.
This, as…