Futuregrowth, Old Mutual's institutional bond investor, warned that elevated fuel prices and potential interest rate hikes by the South African Reserve Bank could squeeze consumers' disposable income and weigh on new vehicle sales. This follows a record-breaking sales surge of 17.3% year-on-year in March, reaching the highest level for that month since 2007. The outbreak of war in the Middle East and heightened US-Iran tensions have fueled oil price increases and renewed inflationary risk. The Reserve Bank is expected to hike rates by 25 basis points in May. Futuregrowth noted that retail-focused loan books, like those of Toyota Financial Services SA and Mercedes-Benz SA, are more exposed to household affordability dynamics, while corporate-focused borrowers are supported by commercial vehicle revenue generation.