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HomeBusinessEconomic Downturn Dampens Consumer Interest In High-Value Assets: Motus

Economic Downturn Dampens Consumer Interest In High-Value Assets: Motus

The economic downturn has led to a decrease in consumer interest and confidence, resulting in a more careful approach to major purchases. As individuals face uncertainty about the future, they are opting to hold onto their vehicles for longer periods, delaying the need for replacements.

Motus, a prominent vehicle sales group, has highlighted the impact of the ongoing economic downturn on consumer behaviour in the acquisition of high-value assets, particularly vehicles.

This growing trend indicates a more cautious approach among consumers when considering vehicle replacements.

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Although Motus has reported a modest one percent increase in operating profit, the figures for headline earnings per share have experienced a notable decline of 27 percent in 2022. Osmen Arbee, the CEO of Motus, has emphasised that the automotive industry is currently grappling with various challenges, including elevated vehicle and parts inflation, as well as the depreciation of the South African rand against major currencies.

The economic downturn has led to a decrease in consumer interest and confidence, resulting in a more careful approach to major purchases. As individuals face uncertainty about the future, they are opting to hold onto their vehicles for longer periods, delaying the need for replacements.

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Motus’ observation of this shift in consumer behaviour aligns with the broader economic climate, where individuals are becoming more cautious with their spending. The increase in vehicle and parts inflation, coupled with the depreciation of the local currency, has made it more challenging for consumers to afford high-value assets.

As the economic downturn continues to impact consumer behaviour, businesses in the automotive industry will need to adapt their strategies to cater to this cautious approach.

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Providing flexible financing options, highlighting the value and longevity of vehicles, and offering cost-effective maintenance solutions can help alleviate consumer concerns and stimulate interest in high-value assets.

In conclusion, the ongoing economic downturn has significantly influenced consumer behaviour in the acquisition of high-value assets, particularly vehicles.

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Florence Sibiya for SurgeZirc SA
Florence Sibiya for SurgeZirc SA
Florence Sibiya is a highly dedicated and talented reporter for SurgeZirc SA Business News. With her passion for business and her commitment to delivering accurate and reliable news, she has become an invaluable asset to the team.
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