How the SA new car market performed in February

How the SA new car market performed in February

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‍According to Naamsa, new car sales declined in February. 

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This declining trend aligns with the regulatory board’s initial forecasts for the year. To elaborate, a total of 44,749 new vehicles were sold during the shortest month of the year, marking a decrease of 413 units or a 0.9% reduction compared to the new car sales recorded in January, which stood at 45,162 units.‍

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Speaking of passenger cars, Toyota South Africa continues to maintain its leading position on the sales charts, with 11,524 units sold and 6,022 exported. Following closely is the Volkswagen Group SA, which recorded sales of 5,333 vehicles and exports of 12,715 units. Suzuki Auto SA secured the third position, with 5,221 new vehicles sold and a modest export figure of 25 units. 

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In fourth place is Nissan SA, which moved 2,739 vehicles and 312 exported vehicles. Ford Motor Company, on the other hand, occupied the fifth position with 2,732 units sold and 6,440 vehicles exported to other markets. 

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The success of Toyota South Africa can be largely attributed to the robust sales of several models. Specifically, the Corolla Cross led the pack with 1,959 units sold, followed by the Starlet with 1,481 units. The Fortuner and Hilux also contributed significantly, with 722 and 3,100 units sold, respectively. Additionally, the Urban Cruiser added to the tally with 649 units sold.

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Naamsa further states that the persisting economic strain remains a real concern for household income, and the weak new vehicle market reflects that middle-income households are restricting big financial commitments for items such as vehicles at present.

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Naamsa CEO Mikel Mabasa welcomed the announcement made by the Minister of Finance, Enoch Godongwana, during his Annual Budget Speech 2024 to support the transition to EVs through a strategic and investment-driven plan. 

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“A notable component of the Minister’s announcement is the introduction of an investment allowance for new EV investments, set to commence in March 2026. This allowance enables businesses and investors involved in EV production to claim 150% of qualifying investment spending in the first year," Mabasa said.

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