New vehicle sales for August 2022 are well up on the numbers recorded in the same month last year, and this news, along with the fact there is likely to be a significant drop in fuel price in September, runs in tandem with the fact SA Auto Week is a go for October.
The SA Auto Week will bring together industry thought leaders from local, regional, continental, and global business and government institutions to consolidate efforts that will compellingly drive the transition to new energy vehicles and Smart technology.
This international hybrid event, backed by the International Organisation of Motor Vehicle Manufacturers [OICA], will play host to industry associations and stakeholders from 33 countries, physically and virtually.
New vehicle sales rose 14,2% compared to last year, with exports up by 57%, and naamsa says the market was “remarkably buoyant, despite the increasingly challenging economic conditions”.
The new passenger car market at 31 269 units registered an increase of 3 992 cars, or a gain of 14,6%, with the car rental industry accounting for 11,2% of sales in August 2022.
Domestic sales of new light commercial vehicles, bakkies and minibuses at 13 281 units were up 1 536 units, or a gain of 13,1%, from the 11,745 light commercial vehicles sold during August 2021.
Sales for medium and heavy truck segments of the industry reflected a mixed performance during the month and at 715 units and 2 155 units, respectively, showed a decline of 3 units, or 0,4% in the case of medium commercial vehicles, and, in the case of heavy trucks and buses an increase of 362 cars or a gain of 20,2%r.
Annual consumer inflation reached a 13-year high, increasing to 7,8% in July 2022. Further interest rate hikes are anticipated for the remainder of the year. However, the car rental business continued to support the new vehicle market as the tourism sector is starting to stabilise after the lifting of all COVID-19 lockdown restrictions in the country.
“The appetite for new vehicles in South Africa continues to surprise motor industry pundits and forecasters, as buyers show remarkable resilience in the face of tough economic pressures,” says Mark Dommisse, Chairperson of the National Automobile Dealers’ Association (NADA).
The shift in the market performance sees imported cars finding acceptance in a market previously dominated by locally-made models – especially in more affordable vehicle segments. Good, quality imports from China, such as Chery and Haval, are finding acceptance in South Africa with steadily growing sales figures. Suzuki continues to thrive with another record month in August.
“The appeal of the pre-owned market appears to be waning, likely due to price inflation and the increasingly limited availability of good stock,” says Lebogang Gaoaketse, Head of Marketing and Communications at WesBank.
The 14,2% increase in new vehicle sales shows an increasing demand for the class. Factors such as rising operating and maintenance costs of older vehicles can be credited as some of the proponents of this new trajectory. New light commercial vehicles, bakkies and minibuses recorded the most impressive performance with a 13.1% increase compared to last year, August.
