An Exploratory Study of the South African Automotive Industry

Zeleke W

Published on: 2022-11-20


An exploratory survey of factors that affect sales growth in used car dealerships in the Tshwane region of Gauteng Province in South Africa was conducted based on a stratified random sample of 126 small and medium automotive enterprises operating in three South African provinces (Gauteng, Eastern Cape and KwaZulu-Natal). The purpose of study was to identify and quantify key predictors of sustained growth in sales. Data was collected on a large number of socioeconomic variables that are known to affect sales growth in the South African automotive industry. Data was gathered from each one of the 126 enterprises by using a structured, pre-tested and validated questionnaire. Frequency tables, cross-tab analyses and binary logistic regression analysis were used for performing data analyses. The results showed that sustained growth in used car sales was influenced by long duration of operation, utilisation of innovative techniques of production, the capacity for improving technical skills of employees, the capacity for producing new products and process development, and the level of skills of employees, in a decreasing order of strength.