Despite economic headwinds and stock supply shortages, SA’s new-vehicle market continued to outperform expectations in 2022.
December capped a strong recovery to SA’s 2022 new-vehicle sales, with 41,783 units sold during the month to record a 12th consecutive month of year-on-year growth.
Total sales for the year ended at 528,963 units, a 13.9% increase on 2021 while still 1.4% below the pre-pandemic 536,612 units sold in 2019. In severely Covid-19 affected 2020, sales fell to just 380,2206 units, said Naamsa, which released the latest report on Monday.
Last year’s strong performance was recorded despite global shortages of semiconductors and wiring harnesses, the latter due to the Ukraine conflict. In SA, consumer spending power was curtailed by inflation reaching a 13-year high of 7.8%, record fuel prices, and the interest rate rising to its highest level since 2016.
The KwaZulu-Natal flooding disaster also left its mark by forcing market leader Toyota to shut its Durban car factory for four months.
New-vehicle sales are regarded as a good barometer of the health of the domestic economy, said Naamsa CEO Mikel Mabasa.
“Following a fairly upbeat first quarter 2022 industry performance, global supply chain disruptions along with the impact of the devastating floods in KwaZulu-Natal, elevated inflation, an upward trend in interest rates, record fuel prices, as well as record highs in the frequency and intensity of load-shedding weighed heavily on both business and consumer confidence.
“However, the new vehicle market’s performance in 2022 remained resilient despite the multiple national and international headwinds. On a positive note, the lifting of all Covid-19 lockdown restrictions in the country in 2022, along with the recovery in business and leisure travel, provided some support to the new vehicle market to counter the growing pressures on household incomes.
“However, the consumer trend of buying less expensive and smaller cars, usually SUVs or crossovers, continued in 2022. Stronger sales in the various commercial vehicle segments indicated improved business confidence, even in the tough economic times,” said Mabasa.
The segment with the most growth in 2022 was passenger cars, which sold 363,092 units for a 19.3% increase over 2021. Light commercial vehicles (including bakkies) sold 135,666 units for a 2% rise, while medium and heavy trucks were respectively 11.3% and 11.7% higher.
“The domestic new-vehicle market’s performance is expected to remain resilient in 2023 despite weakening domestic economic indicators and a deteriorating global growth outlook,” said Mabasa.
“Growing concerns about global stagflation, which is high interest rates combined with slow growth and high inflation, the continued economic impact and disruption of supply chains resulting from the Russia-Ukraine war, and the current pace of tighter monetary policy in major markets have increased the possibility of a global recession.
“There is also a likelihood of further near-term global supply chain disruptions stemming from the rapid reopening of the Chinese economy that has resulted in surging Covid-19 infections.”
He said a key priority focus for the SA government in 2023 is to finalise the support framework for electric-powered New-Energy Vehicles (NEVs), considering the importance of timing of the interventions so that they were aligned with investment decisions and lead times of the OEMs when considering next-generation models.
Best-selling vehicle brands in December 2022 (top 15)
- Toyota - 11,250 units
- Volkswagen - 5,331
- Suzuki - 3,058
- Hyundai - 2,770
- Nissan - 2,144
- Ford - 1,948
- Renault - 1,868
- Haval - 1,735
- Kia - 1,650
- Isuzu - 1,607
- Mercedes - 1,525
- Chery - 1,359
- BMW - 1,248
- Mahindra - 739
- Daimler Truck - 518
SA new-car sales enjoy a high-revving end to 2022
Stock shortages and high inflation failed to put the brakes on car consumers
Image: Denis Droppa
Despite economic headwinds and stock supply shortages, SA’s new-vehicle market continued to outperform expectations in 2022.
December capped a strong recovery to SA’s 2022 new-vehicle sales, with 41,783 units sold during the month to record a 12th consecutive month of year-on-year growth.
Total sales for the year ended at 528,963 units, a 13.9% increase on 2021 while still 1.4% below the pre-pandemic 536,612 units sold in 2019. In severely Covid-19 affected 2020, sales fell to just 380,2206 units, said Naamsa, which released the latest report on Monday.
Last year’s strong performance was recorded despite global shortages of semiconductors and wiring harnesses, the latter due to the Ukraine conflict. In SA, consumer spending power was curtailed by inflation reaching a 13-year high of 7.8%, record fuel prices, and the interest rate rising to its highest level since 2016.
The KwaZulu-Natal flooding disaster also left its mark by forcing market leader Toyota to shut its Durban car factory for four months.
New-vehicle sales are regarded as a good barometer of the health of the domestic economy, said Naamsa CEO Mikel Mabasa.
“Following a fairly upbeat first quarter 2022 industry performance, global supply chain disruptions along with the impact of the devastating floods in KwaZulu-Natal, elevated inflation, an upward trend in interest rates, record fuel prices, as well as record highs in the frequency and intensity of load-shedding weighed heavily on both business and consumer confidence.
“However, the new vehicle market’s performance in 2022 remained resilient despite the multiple national and international headwinds. On a positive note, the lifting of all Covid-19 lockdown restrictions in the country in 2022, along with the recovery in business and leisure travel, provided some support to the new vehicle market to counter the growing pressures on household incomes.
“However, the consumer trend of buying less expensive and smaller cars, usually SUVs or crossovers, continued in 2022. Stronger sales in the various commercial vehicle segments indicated improved business confidence, even in the tough economic times,” said Mabasa.
The segment with the most growth in 2022 was passenger cars, which sold 363,092 units for a 19.3% increase over 2021. Light commercial vehicles (including bakkies) sold 135,666 units for a 2% rise, while medium and heavy trucks were respectively 11.3% and 11.7% higher.
“The domestic new-vehicle market’s performance is expected to remain resilient in 2023 despite weakening domestic economic indicators and a deteriorating global growth outlook,” said Mabasa.
“Growing concerns about global stagflation, which is high interest rates combined with slow growth and high inflation, the continued economic impact and disruption of supply chains resulting from the Russia-Ukraine war, and the current pace of tighter monetary policy in major markets have increased the possibility of a global recession.
“There is also a likelihood of further near-term global supply chain disruptions stemming from the rapid reopening of the Chinese economy that has resulted in surging Covid-19 infections.”
He said a key priority focus for the SA government in 2023 is to finalise the support framework for electric-powered New-Energy Vehicles (NEVs), considering the importance of timing of the interventions so that they were aligned with investment decisions and lead times of the OEMs when considering next-generation models.
Best-selling vehicle brands in December 2022 (top 15)
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