According to Naamsa, the Automotive Business Council reported domestic new vehicle sales in November 2021, at 41 588 units, reflecting an increase of 2 573 units, or 6,6%, from the 39 015 vehicles sold in November 2020.
Export sales recorded a further decline of 14 277 units, or 42,2%, to 19 548 units in November 2021 compared to the 33 825 vehicles exported in November 2020.
Overall, out of the total reported industry sales of 41 588 vehicles, an estimated 35 014 units, or 84,2%, represented dealer sales, an estimated 11,5% represented sales to the vehicle rental industry, 2,4% sales to government, and 1,9% to industry corporate fleets.
Rental sales, the only nod Naamsa gives to the massive impact of fleet and corporate buying, clearly shows an economy that was inching its way back to normal – but, this is likely to take another hit under the grip of Omicron.
The November 2021 new passenger car market at 27 828 units registered an increase of 2 386 cars, or a gain of 9,4%, compared to the 25 442 new cars sold in November 2020.
The car rental industry supported the new passenger car market during the month and accounted for a sound 15,6% of car sales in November 2021.
Domestic sales of new light commercial vehicles, bakkies and mini-buses at 11 156 units during November 2021 recorded a decline of 90 units, or a fall of 0,8%, from the 11 246 light commercial vehicles sold during November 2020.
Sales for medium and heavy truck segments of the industry reflected a good performance and, at 779 units and 1 825 units, respectively, showed an increase of 141 units, or 22,1% in the case of medium commercial vehicles and, in the case of heavy trucks and buses an increase of 136 vehicles, or a gain of 8,1%, compared to the corresponding month last year.
The November 2021 exports sales number at 19 548 units reflected a massive fall of 14 277 vehicles, or 42,2%, compared to the 33 825 vehicles exported in November 2020.
For the year-to-date, vehicle exports were still 8,3% ahead of the same period last year.
Despite several challenges during the month, including the first interest rate hike in three years, sustained load-shedding and the new Omicron Covid-19 variant, the new vehicle market continued to show resilience on its gradual recovery path during the month.
With the added inflationary pressures of the record-high fuel prices and prospects of further interest rate increases, businesses and consumers will undoubtedly remain under financial pressure.
The November ABSA Purchasing Managers’ Index (PMI) reflected a 5-point decline for the index measuring expected business conditions highlighting the economy remains fragile as the pace of economic recovery is expected to slow down substantially in 2022.
“While it remains difficult to compare data over periods given the uncertainty of the pandemic for the past two years, a more certain sign of market improvement can be seen in a broader view of sales performance,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank.
“During 2020, just two months of the year exceeded 40 000 units and those were the first two months, prior to lockdown regulations being put in place. However, five months of 2021 have recorded sales of more than 40 000 units, including the past four months consecutively. Market conditions are certainly improving.”
“New vehicle sales figures for November 2021 show that the market is holding up surprisingly well despite a number of factors we thought would have resulted in a slowdown of new vehicle business,” commented Mark Dommisse, Chairperson of the National Automobile Dealer Association (NADA).
“What is particularly encouraging as we move towards the end of 2021 is that year-to-date total vehicle sales are 24.8% ahead of the figure for the same 11-month period last year, with all market segments, except buses, showing significant improvements.
“However, we could see December and January sales demonstrate the negative effect of the arrival of the new COVID-19 variant, as well as the huge increases in fuel prices and the impact of the weaker rand on vehicle pricing. Dealers will need to be focussed and resourceful during what will be a testing sales period, but consumers can expect some special offers as manufacturers and distributors seek to meet annual sales targets,” concluded Dommisse.
