SA car sales strong in February but Ukraine war could cause hiccups

SA’s new-vehicle sales continued to gain traction last month, but the war in Ukraine poses a potential global supply chain challenge for the motor industry.

There were 44,229 new cars, light commercials and trucks sold in February, making for a strong start to the year after 41,382 sales in January. Year-to-date sales rose from 72,008 to 85,559 units vs the first two months of 2021, representing an 18.8% increase.

The growth-positive national budget was good news for business and consumers, with a cut in corporate income tax, accommodating adjustments in personal income tax brackets and no hike in the fuel or Road Accident Fund levy, said the Naamsa automotive business council, which represents SA’s motor industry.

However, motorists’ relief was short-lived as fuel prices will hit record highs in March with petrol to cost more than R21 a litre for the first time.

The vehicle emissions tax rate on passenger cars will also increase from R120 to R132/gCO2/km while the tax on double cabs will increase from R160 to R176/gCO2/km from April 1.

The automotive industry is concerned about the escalating geopolitical tensions caused by the Russian invasion of Ukraine, says Naamsa CEO Mikel Mabasa.

“It poses potential global supply chain challenges for the industry because of Europe’s strategic significance to the global automotive ecosystem. The timing of the confrontation comes at the time when the global motor industry is trying to recover from the devastating affect of Covid-19, disruptions and global shortages of semiconductors and many other supply chain related challenges experienced since the beginning of 2020.”

Toyota retained its position as SA’s most popular brand and recorded its largest market share (30.4%) to date. It also posted its second highest ever monthly sales total, retailing 13,458 units in February, ahead of Volkswagen (6,153), Suzuki Auto (3,240), Hyundai (3,017), Nissan (2,126), Haval (2,054), Renault (2,047), Ford (1,877), Kia (1,737), and Isuzu (1,677) rounding out the top ten.

TOP SELLING NEW VEHICLES — FEBRUARY 2022

1. Toyota Hilux — 3,503
2. Toyota Corolla Cross — 1,693
3. VW Polo Vivo — 1,634
4. Toyota Starlet — 1,607
5. Toyota Hi-Ace — 1,438
6. Isuzu D-Max — 1,401
7. Suzuki Swift — 1,313
8. VW Polo — 1,186
9. Toyota Fortuner — 1,101
10. Renault Kwid — 1,041
11. Nissan NP200 — 1,020
12. VW T-Cross — 990
13. Toyota Urban Cruiser — 927
14. Ford Ranger — 879
15. Toyota Agya — 858
16. VW Polo sedan — 818
17. Mahindra Scorpion Pik-Up — 766
18. Hyundai Atos — 756
19. Ford EcoSport — 703
20. Suzuki Vitara Brezza — 664
21. Hyundai Venue — 644
22. GWM P-Series — 623
23. Toyota Corolla Quest — 575
24. Haval Jolion — 561
25. GWM Steed — 526