The Automotive Business Council (Naamsa) said there was a sigh of relief for new vehicle buyers as the South African Reserve Bank paused interest rates at 8,25% in July 2023, after 10 consecutive hike rates totalling 475 cumulative basis points of hikes since November 2021.

Improvement in economic conditions, lower fuel index recorded at 8,3%, food inflation revised lower at 10,3%, and notably, the consumer price inflation having gone below the SARB’s target range of 3% to 6% at 5,4% in June 2023 were cited as the main reasons behind the unchanged rates. The last time the CPI was below the SARB target of 6% was more than a year ago in April 2022.

Furthermore, Naamsa is encouraged by the collaboration between government and business, wherein 115 private company CEOs signed a pledge in July 2023 to help government turn the tide on the well documented South African economic challenges. The pledge will assist in achieving sustainable development, and inclusive economic growth.

Through the stewardship of Andrew Kirby, Naamsa’s immediate past president and Toyota’s president and CEO, the auto industry will remain invested in supporting our country’s recovery efforts and to strengthen our investment story into the future.

The new vehicle statistics for July 2023 are as follows:
South Africa posted a marginal increase in new vehicle sales in July 2023, affected by the decline in demand of passenger cars. Aggregate domestic new vehicle sales in July, at 43,389 units reflected an increase of 567 units, or 1,3%, from the 42,822 vehicles sold in July 2022. Contrary, export sales recorded a significant increase of 11 896 units, or 47,3%, to 37 064 units in July 2023 compared to the 25 168 vehicles exported in July 2022. The July 2023 export increases reflects the low base effect of the July 2022 Kwa-Zulu Natal Riots shocks on production and exports.

Overall, out of the total reported industry sales of 43,389 vehicles, an estimated 7,878 units, or 81,8%, represented dealer sales, an estimated 14,1% represented sales to the vehicle rental industry, 1,7% sales to government, and 2,3% to industry corporate fleets.

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