There are good times ahead for the motor industry, many analysts have predicted, but August’s new vehicle sales performance was something of a speed bump on that road.
According to figures released by Naamsa, the Automotive Business Council, new vehicle sales in August amounted to 43,588 units, which was a 4.9% decline compared with the same month last year.
But that picture was largely skewed by softer demand for bakkies, with the light commercial vehicle total of 10,709 being 21.5% lower than July last year.
The passenger car market actually grew by 3.1% year-on-year, to 30,022 units, buoyed by strong rental industry demand, which accounted for 16.7% of the total.
Naamsa expects the automotive sales picture to improve over the remainder of 2024, as lower inflation, decreasing fuel prices and positive economic sentiment all combine to improve consumer sentiment.
However, with interest rates currently at a 15-year high, vehicle affordability and household debt will continue to hamper the new vehicle market in the short term, Naamsa said, with two potential interest rate cuts for the remainder of the year possibly improving the affordability outlook in the mid-term.
Ghana Msibi, chief executive of WesBank, believes that a slow road to recovery lies ahead for the motor industry.
“The worst is behind us,” Msibi said. “What lies ahead is the start of the road to recovery, not robust growth in the initial phase, but rather shallow gains in certain pockets.”
Brandon Cohen, Chairperson of the National Automobile Dealers Association (NADA) said a reduction in interest rates would significantly benefit the local retail motor industry as well as the broader economy.
The introduction of the new two-pot retirement system could also add an interesting dynamic to the market.
“It will be interesting to see how many people take advantage of the opportunity to access their savings within the prescribed limits.
“If the numbers are close to predictions, this could inject anywhere between R10 billion and more than R100 billion into the economy," Cohen added.
Best-selling vehicles in South Africa?
At the top of the sales charts we saw a closer-than-usual scuffle between the Toyota Hilux (2,527) and Ford Ranger (2,312).
Below that there was an interesting battle between the hatchbacks and crossovers, with evidently strong demand for affordable vehicles.
The Hyundai Grand i10 enjoyed a particularly successful month with 1,328 sales, beaten only by the ever-popular Volkswagen Polo Vivo, which was in run-out for most of the month ahead of the facelift launch later in the month.
Interestingly, the Toyota Starlet Cross outsold its hatchback sibling, with 1,181 sales placing it eighth overall in the vehicle market.
The Volkswagen Polo also enjoyed a stronger-than-usual month with 1,149 sales, while the Chery Tiggo 4 Pro completed the top 10 with 1,072 sales.
Top 50 vehicle sales: August 2024
- 1. Toyota Hilux - 2,527
- 2. Ford Ranger - 2,312
- 3. Volkswagen Polo Vivo - 1,937
- 4. Isuzu D-Max - 1,634
- 5. Toyota Corolla Cross - 1,630
- 6. Hyundai Grand i10 - 1,328
- 7. Suzuki Swift - 1,190
- 8. Toyota Starlet Cross - 1,181
- 9. Volkswagen Polo - 1,149
- 10. Chery Tiggo 4 Pro - 1,072
- 11. Nissan Magnite - 991
- 12. Haval Jolion - 953
- 13. Suzuki Ertiga - 892
- 14. Toyota Starlet - 842
- 15. Mahindra Scorpio Pik-Up - 780
- 16. Toyota Fortuner - 760
- 17. Kia Sonet - 750
- 18. Suzuki Fronx - 724
- 19. Toyota Urban Cruiser - 669
- 20. Renault Kiger - 620
- 21. Suzuki Baleno - 604
- 22. Volkswagen Polo Sedan - 551
- 23. Renault Kwid - 512
- 24. Hyundai i20 - 484
- 25. Nissan Navara - 468
- 26. Toyota Hi-Ace - 451
- 27. Toyota Vitz - 432
- 28. Toyota Corolla Quest - 413
- 29. Volkswagen Amarok - 346
- 30. Chery Tiggo 7 Pro - 345
- 31. Toyota Rumion - 326
- 32. Haval H6 - 292
- 33. Omoda C5 - 290
- 34. Suzuki Jimny - 284
- 35. Suzuki S-Presso - 284
- 36. Volkswagen T-Cross - 277
- 37. Hyundai Venue - 264
- 38. Suzuki Grand Vitara - 260
- 39. Toyota Land Cruiser Prado - 248
- 40. Ford Territory - 246
- 41. Toyota Land Cruiser PU - 234
- 42. Ford Everest - 229
- 43. Suzuki Dzire - 217
- 44. Suzuki Ciaz - 215
- 45. Chery Tiggo 8 Pro - 209
- 46. GWM P-Series 205
- 47. Renault Triber - 197
- 48. Hyundai H100 Bakkie - 194
- 49. Jaecoo J7 - 178
- 50. Kia Picanto - 174
On the manufacturer front, Volkswagen maintained its lead over Suzuki Auto for second place, while Chery Auto overtook Nissan for seventh place among the OEMs, highlighting the changing times in the motor industry.
Top 10 Manufacturers: August 2024
- 1. Toyota - 10,656
- 2. Volkswagen - 5,645
- 3. Suzuki Auto - 5,131
- 4. Ford - 2,960
- 5. Hyundai - 2,721
- 6. Isuzu - 1,961
- 7. Chery - 1,626
- 8. Nissan - 1,621
- 9. GWM - 1,608
- 10. Renault - 1,367
IOL Motoring