New car sales increase in SA

November saw 48 585 domestic new car sales in South Africa, an 8.1% increase from the 44 927 units sold in November last year, according to the Automotive Business Council’s (Naamsa) latest New Vehicle Sales Statistics report.

A large majority (81.2%) were dealer sales, 14.6% seasonal sales in the vehicle rental industry, 2.4% government sales and 1.8% were sales to industry corporate fleets.

Significantly, the new passenger car market was a ‘shining beacon in the new vehicle market’, with 35 101 units solid, a gain of 20% on last November 2023’s 29 252 units.

Although new vehicle sales did not perform well earlier this year, they are now only 3.5% below the average for the same period last year, but are still unlikely to reach pre-pandemic levels this year.

This stronger seasonal performance can partly be attributed to five consecutive months of lower consumer inflation and a second interest rate cut by the South African Reserve Bank (SARB).

Further cuts in the new year could further support vehicle affordability and consumer sentiment across segments.

The manufacturers with the top three total vehicle sales last month were Toyota with 12 106 sales, Volgswagen Group SA with 6 321 and Suzuki Auto close behind with 6 004.

Special mentions include Chinese vehicle manufacturers Chery South Africa and Jetour. Chery recorded its best ever month of sales in November, exceeding the 2 000 unit mark by 6, while Jetour officially recorded over 1 000 sales since launching a mere two months ago.

However, sales in the new light commercial vehicle, medium truck, and heavy truck and bus segments saw a weaker performance this year, with a decrease of 16.3%, 9.2% and 0.5% respectively from November 2023.

Last month’s vehicle export sales were 30 431, a 28.6% or 12 110 unit decrease from the record exports of 42 641 in November 2023.

From January to November, these exports are 23.9% below last year’s average for the same period.

International banks have all cut interest rates in the last two months, but the global macro-economic context has become more challenging.

Domestic vehicle exports will remain a function of the direction and the economic performance of global markets in the new year.

Overall, however, things are looking relatively good for South Africa’s growth next year owing to structural reforms in network sectors such as electricity and transport, among other things in the works.

Don’t have the ZO app? Download it to your Android or Apple device here:

HAVE YOUR SAY