Battle of Wheels: How the SA New Car Market Performed in September
The South African automotive sector is an interesting one. Every month is a symphony of activity in the auto industry, with manufacturers vying for the most sales.
For the month of September, as reported by Industry representative body, the National Association of Automobile Manufacturers of South Africa (Naamsa), the new vehicle industry showcased a year-on-year decline of 4.1% to finish at 46,021 units. Still, this number represented a slight increase over August’s 45,679 new car sales.
According to Naamsa, the decline in new car sales can be attributed to factors such as rising fuel costs, challenges in the logistics industry, and Eskom’s inability to meet the industry’s electricity demands.
For the month of September, Toyota continues to headline the list with 12,702 vehicles sold, while the Volkswagen Group slotted into the second position with 6,316 units. Suzuki ended in third with 4,478 units, Ford in fourth with 2,807, and Hyundai in fifth with 2,665 units.
The rest of the top ten were Nissan (2,130 units), Isuzu (1,990 units), Kia (1,703 units), Renault (1,702 units), and Haval (1,532 units).
Toyota’s success was driven by its popular models such as the Hilux bakkie (3,249 units), the Corolla Cross (2,259 units) and the Starlet (1,247 units). Ford’s Ranger couldn’t match the Hilux, selling 2,413 units.
The passenger vehicle segment was the worst hit in September, with sales falling by 8.4% from last year’s 32,392 to 29,669 units. The export sales also suffered a setback, dropping by 12.6% from 41,464 units in September 2022 to 36,247 units in September 2023.
“Although the South African Reserve Bank maintained the repurchase rate at 8.25% in September 2023, the automotive industry continues to grapple with concerns over consumer affordability. The most recent SARB report indicates a 0.3% contraction in household consumption expenditure, with household debt surpassing household disposable income by 62.5% in the second quarter of 2023”, said Naamsa.
Naamsa urged the government to implement policies that would support the recovery of the automotive sector and boost consumer confidence.
