November vehicle sales signal positive momentum
November was a strong month for the South African auto market.
November 2024 marked a significant milestone for the South African automotive industry, with sales surpassing October’s figures to become the year’s best-performing month.
This positive trend was primarily driven by increased fleet sales from rental companies, while consumer demand softened year-on-year.
Key takeaways of the data:
• Strong year-on-year growth: November sales surged 8.1% compared to the same period in 2023, reaching 48 585 units.
• Dominance of passenger cars: Passenger car sales increased by 20% to 35 101 units, fuelled by rental company demand.
• Softening demand for light commercial vehicles: LCV sales declined by 16.3% to 10 827 units, reflecting ongoing market volatility and consumer caution.
• Consumer affordability concerns: Rising new vehicle prices and constrained household budgets have impacted consumer demand.
• Impact of economic factors: Lower interest rates, easing inflation and a stable currency have positively influenced consumer sentiment.
Looking ahead
While November’s strong performance is encouraging, the industry remains cautious about the future. Interest rate hikes, global economic uncertainties, and ongoing geopolitical tensions could impact consumer confidence and vehicle sales.
However, if the positive trends observed in recent months continue, the South African automotive market could experience a sustained period of growth and stability in 2025.
As the industry navigates these challenges and opportunities, it is essential to monitor consumer sentiment, economic indicators and global market trends to make informed decisions and adapt to changing circumstances.
Source: MotorPress/WesBank
