New vehicle sales in South Africa started 2023 on a positive note though the market was curtailed by a depressed economy and ongoing structural problems.
The 43,509 cars, light commercials and trucks sold in January reflected an increase of 2,006, or 4.8%, from the 41,503 vehicles sold in January 2022.
Passenger cars accounted for 31,072 units last month, a rise of 2.9% over January 2022, while light commercials (including bakkies and minibuses) sold 10,622 units — a gain of 10.4%.
Despite the growth, automotive industry body Naamsa called it a weak performance which reflected the same challenges that confronted the economy and the industry in 2022, such as persistent load-shedding, high inflation and interest rates, and currency depreciation.
Naamsa CEO Mikel Mabasa said the South African Reserve Bank raised interest rates for the eighth consecutive time since November 2021 and adjusted GDP growth for 2023 down to 0.3% due to extensive load-shedding and other logistical constraints.
“A close correlation exists between new vehicle sales and GDP growth,” said Mabasa.
“January 2023 was by far the worst month for cumulative load-shedding the country has ever experienced in a month. Undoubtedly, the destructive higher stages of load-shedding have amplified the negative impact on vehicle production and component manufacturing.
“Load-shedding is the biggest inhibitor to the industry’s localisation ambitions, creating sustainable jobs within the sector and to attract investment to grow the economy,” he said.
Toyota retained its position as the most popular vehicle brand with 12,532 sales, more than double that of its nearest rival, Volkswagen.
Total vehicle sales by manufacturer (top 15):
1. Toyota — 12,532
2. Volkswagen — 5,081
3. Suzuki — 4,357
4. Nissan — 2,927
5. Hyundai — 2,525
6. Renault — 2,051
7. Kia — 1,686
8. Ford — 1,661
9. Haval — 1,565
10. Isuzu — 1,527
11. Chery — 1,327
12. BMW — 1,231
13. Mahindra — 1,161
14. Mercedes-Benz — 588
15. Mazda — 401
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These were SA's top-selling car brands in January
Vehicle sales were up in January, but Naamsa says load-shedding is having a serious impact on production
Image: Dall-E 2
New vehicle sales in South Africa started 2023 on a positive note though the market was curtailed by a depressed economy and ongoing structural problems.
The 43,509 cars, light commercials and trucks sold in January reflected an increase of 2,006, or 4.8%, from the 41,503 vehicles sold in January 2022.
Passenger cars accounted for 31,072 units last month, a rise of 2.9% over January 2022, while light commercials (including bakkies and minibuses) sold 10,622 units — a gain of 10.4%.
Despite the growth, automotive industry body Naamsa called it a weak performance which reflected the same challenges that confronted the economy and the industry in 2022, such as persistent load-shedding, high inflation and interest rates, and currency depreciation.
Naamsa CEO Mikel Mabasa said the South African Reserve Bank raised interest rates for the eighth consecutive time since November 2021 and adjusted GDP growth for 2023 down to 0.3% due to extensive load-shedding and other logistical constraints.
“A close correlation exists between new vehicle sales and GDP growth,” said Mabasa.
“January 2023 was by far the worst month for cumulative load-shedding the country has ever experienced in a month. Undoubtedly, the destructive higher stages of load-shedding have amplified the negative impact on vehicle production and component manufacturing.
“Load-shedding is the biggest inhibitor to the industry’s localisation ambitions, creating sustainable jobs within the sector and to attract investment to grow the economy,” he said.
Toyota retained its position as the most popular vehicle brand with 12,532 sales, more than double that of its nearest rival, Volkswagen.
Total vehicle sales by manufacturer (top 15):
1. Toyota — 12,532
2. Volkswagen — 5,081
3. Suzuki — 4,357
4. Nissan — 2,927
5. Hyundai — 2,525
6. Renault — 2,051
7. Kia — 1,686
8. Ford — 1,661
9. Haval — 1,565
10. Isuzu — 1,527
11. Chery — 1,327
12. BMW — 1,231
13. Mahindra — 1,161
14. Mercedes-Benz — 588
15. Mazda — 401
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