Johannesburg - South Africa is expected to sell nearly 30 000 fewer vehicles this year, the National Association of Automobile Manufacturers said on Monday.
Total vehicles sales are expected to drop to 617 500 units from 646 556 in 2006.
Naamsa's annual report showed the downturn is being driven by reduced sales growth in the passenger car market
The passenger car market is expected to fall by about 47 000 units this year compared to 426 812 units sold last year.
The vehicle market has been depressed throughout the year as consumers felt the pinch of a series of interest rate hikes and stricter credit laws, and a further slowdown is projected for the coming year, Naamsa said.
Total sales for the 2008 are forecast slow to 604 000 units from a projected 617 500 units this year, denting hopes that South Africa could sell a million cars by 2010.
But other units such as light, medium and heavy commercial vehicles are expected to show steady growth both this year and the next.
This part of the market is benefiting from the construction boom in the lead-up to the 2010 Fifa World Cup and government's stated goal of accelerating the economic growth rate to 6 percent per year.
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