When analysing the figures released by the Automotive Business Council (NAAMSA), smaller declines in passenger and light commercial vehicle sales were recorded during October 2023, compared to October 2022. On the upside, there was an increase in export, and heavy truck and bus sales.

Thembinkosi Pantsi, the national vice-chairperson of the National Automobile Dealers’ Association (NADA), observed, “The macroeconomic climate in South Africa is not conducive to consumers making significant purchasing decisions. Unemployment, poverty, and inequality continue to be the key issues affecting our country. Frequent power outages disrupt daily life and business operations, while water shortages and intermittent supply also affect several parts of South Africa these days.

“It’s evident that the ongoing trend of buying down continues as Chinese brands gain momentum, along with affordable mobility options from other brands. The increase in new car prices on certain brands has also contributed to the drop in October numbers, leading consumers to opt for demo models or pre-owned vehicles,” highlighted Pantsi.

“Nevertheless, we were surprised and proud that the retail sales channel, which sells vehicles through franchised dealers, managed to sell 36,468 units, accounting for 80.2% of the total for October, which stood at 45,445 units. This was only 2% below the figure recorded in October 2022. On the positive side, medium truck sales increased by 8.3%, and sales in the heavy truck and bus segment rose by a surprising 26% to 2,365 units for October. This indicates a measure of underlying confidence in the business sector, considering that these vehicles represent significant investments when many economic commentators are raising warning flags,” added Pantsi.

“As we enter the last two months of 2023, we are still 2.1% ahead of 2022 in our year-to-date total sales figures. We are confident that we should be able to maintain a positive figure at the end of December,” concluded Pantsi.

Source: Ilana Salant