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Local dealerships boost jobs as new car brands fuel financing demand in SA
“More entrants to the market means more dealership networks, which directly translates into increased job creation – positively impacting the economy,” says Troy van der Westhuyzen, managing director at MVIA Insure.
One of the newest entrants is LDV, a subsidiary of Saic Motor Corp, the largest vehicle manufacturer in China and one of the 10 largest in the world.
To support LDV’s entry into the South African market, MVIA has established a partnership with the brand to aid in the development of its expanding dealer network.
This partnership involves the creation of a range of optional insurance and non-insurance products, such as maintenance plans, tyre and rim protection, and scratch and dent cover, which MVIA will manage.
“These products are intended to provide dealerships with additional options for their clients,” says van der Westhuyzen.
He notes that outsourcing the management of these products to MVIA helps dealerships manage costs and complexities associated with in-house administration.
“As more brands enter South Africa, partnerships like the one between MVIA and LDV are significant for the development of dealerships. The economic activity from these businesses impacts local communities and the national economy. With the dealership sector contributing 2.1% to GDP, its success is integral to South Africa’s economic health,” concludes van der Westhuyzen.