New-vehicle sales in South Africa declined 2% in October compared to the same month last year, reflecting the persisting economic strain on consumers.
It was the third consecutive month of decline in the market, said motor industry umbrella body Naamsa. The 45,445 units sold last month reflected a decline of 905 units compared to October 2022.
New passenger cars at 29,912 units were 3.5% lower, while light commercial vehicles (LCVs), bakkies and mini-buses at 12,361 units recorded a 3.0% drop. In recent months LCV sales had exceeded those of last year, largely due to the loss of production of popular models like the Hilux and Hiace when Toyota’s flooded Durban plant closed for several months in 2022.
Economic constrains continued to impact new vehicle sales during the month as the rising cost of living and restrictive borrowing costs were depressing demand for luxury goods, said Naamsa.
“The new vehicle market’s prolonged recovery from the Covid-19 pandemic continued into 2023 with the expectation that the market would return to the 2019 level after three years. The market was still 1.3% below the pre-pandemic level in 2022 and for the year to date was now 2.1% units ahead of the corresponding period 2022, on track to recover to the pre-pandemic level of 2019,” said Naamsa CEO Mikel Mabasa.
Government’s long-awaited decision on the future of the local automotive industry was again kicked down the road. In his medium-term budget policy statement in parliament on Wednesday, finance minister Enoch Godongwana was expected to announce incentives to support the automotive industry’s transition to new-energy vehicles (NEVs). He confirmed government plans to implement tax and expenditure measures to support the automotive sector but said details will only be announced in the 2024 budget review.
Toyota remained South Africa’s favourite brand in October with 12,440 units sold, ahead of Volkswagen and Suzuki.
Top 15 selling brands, October 2023:
- Toyota — 12,440
- Volkswagen — 6,595
- Suzuki — 4,480
- Hyundai — 2,638
- Ford — 2,318
- Nissan — 2,178
- Isuzu — 1,848
- Renault — 1,606
- Kia — 1,417
- Haval — 1,389
- Chery — 1,302
- BMW — 1,179
- Mahindra — 827
- Stellantis — 778
- Mercedes-Benz — 669
Toyota continues market leadership in October as car sales drop
It was the third consecutive month of decline in the market
Image: Dall-E
New-vehicle sales in South Africa declined 2% in October compared to the same month last year, reflecting the persisting economic strain on consumers.
It was the third consecutive month of decline in the market, said motor industry umbrella body Naamsa. The 45,445 units sold last month reflected a decline of 905 units compared to October 2022.
New passenger cars at 29,912 units were 3.5% lower, while light commercial vehicles (LCVs), bakkies and mini-buses at 12,361 units recorded a 3.0% drop. In recent months LCV sales had exceeded those of last year, largely due to the loss of production of popular models like the Hilux and Hiace when Toyota’s flooded Durban plant closed for several months in 2022.
Economic constrains continued to impact new vehicle sales during the month as the rising cost of living and restrictive borrowing costs were depressing demand for luxury goods, said Naamsa.
“The new vehicle market’s prolonged recovery from the Covid-19 pandemic continued into 2023 with the expectation that the market would return to the 2019 level after three years. The market was still 1.3% below the pre-pandemic level in 2022 and for the year to date was now 2.1% units ahead of the corresponding period 2022, on track to recover to the pre-pandemic level of 2019,” said Naamsa CEO Mikel Mabasa.
Government’s long-awaited decision on the future of the local automotive industry was again kicked down the road. In his medium-term budget policy statement in parliament on Wednesday, finance minister Enoch Godongwana was expected to announce incentives to support the automotive industry’s transition to new-energy vehicles (NEVs). He confirmed government plans to implement tax and expenditure measures to support the automotive sector but said details will only be announced in the 2024 budget review.
Toyota remained South Africa’s favourite brand in October with 12,440 units sold, ahead of Volkswagen and Suzuki.
Top 15 selling brands, October 2023:
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