“Radical, irresponsible statements” about nationalisation were undermining the propensity to buy new vehicles, said former McCarthy Group CEO Brand Pretorius at a Future Group automotive industry breakfast in Johannesburg on Friday.

ANC Youth League (ANCYL) president Julius Malema caused an uproar in business circles earlier this month when he called for the nationalisation of certain economic sectors, such as the mining sector.

Nationalisation is not currently ANC policy.

Pretorius said there was no direct impact on the motor industry as that was not the sector the ANCYL was threatening to nationalise, but emphasised that it was damaging confidence in the long-term future of South Africa.

It could also cause a deterioration in new vehicle sales, as this was strongly influenced by business and consumer confidence, which was being eroded by talks of nationalisation.

“People do not only look at price, they also take a view of the economic environment for the next three to five years. Our market is sentiment driven.”

Pretorius said many people could not see the “wheels within wheels, grandstanding and posturing” of such talk, which would cause it to affect confidence levels.

“Confidence is brittle, and a lack of decisive leadership is aggravating the situation.”

Associated Motor Holdings (AMH) CEO Manny de Canha noted that it was important for business and society to start voicing their concerns over possible nationalisation.

“In three, five years it will gain momentum. We need to stop it in its tracks now.

“Wild statements such as these are very dangerous for South Africa. A lot of business people were shaken by this. Parent companies are asking what is happening in South Africa.”

AMH and McCarthy are vehicle retailers and importers.