Analysing the impact of disruptive events on the performance of the automotive industry sales in Gauteng, South Africa

Abstract

The South African Automotive Sector contributes significantly to the country's economy and is linked to the financial and insurance sectors. This study aimed to examine the impact of disruptive events on the automotive sector's sales performance in South Africa. The study specifically aimed to identify the main factors that affect the automotive sector's sales performance and assess insights into vehicle sales performance during disruptive events in South Africa. The qualitative research approach was applied to achieve the aim and research objectives of this study. A critical literature review helped to analyse and evaluate existing information concerning disruptive events and how they impact the automotive sector globally and in South Africa. The empirical study was exploratory and descriptive and consisted of interviewed participants to gather and interpret their perspectives. The literature showed that, due to globalisation, disruptive events affect several countries or the whole globe. This is regardless of whether the disruptive event is a pandemic caused by an infectious disease or an economic crisis. The automotive sector comprises various national and international industries codependent on manufacturing, assembling, supply chain, and sales. Hence a disruptive event starting in one country causes delays in other industries and other countries. However, the literature shows that developing are severely affected by disruptive events compared to developed countries. This is because of the socio-economic challenges developing countries face that make it difficult to recover economically after a disruptive event. The empirical study shows that salespersons are aware of the impact of disruptive events on the automotive sector and vehicle sales performance. The participants of this study were highly experienced, with more than ten years of experience in sales. The results show a need for flexibility in sales because it allows a salesperson to refine their sales philosophy quickly when faced with a disruptive event. The recommendation is that salespersons view the impact of disruptive events on a broader scale to be cognisant of how companies and the whole sector is affected, as opposed to only being aware of the impact at a team and individual level.