These were South Africa’s top-selling car brands in August

New vehicle sales in August delivered a mixed bag, with passenger cars slightly improving over the same month last year while light commercials took a dive.

With 30,022 units, new passenger cars registered an increase of 3.1% compared with August 2023 but light commercial vehicles (including bakkies and minibuses) were down 21.5% to 10,709 units. Overall, new vehicle sales last month — including cars, light commercials and trucks — decreased 4.9% to 43,588 units.

“The positive July new vehicle market performance could not fuel a sustained rebound in the August sales performance,” said motor industry governing body Naamsa which released the latest sales figures on Monday.

“Encouragingly, however, the volume passenger car segment trended upward over the past two months. Though supported by seasonal sales to the vehicle rental industry, a 13-month high rand exchange rate, a three-year low 4.6% consumer inflation rate, decreasing fuel prices, the potential 'end to load-shedding', as well as definite prospects of lower interest rates on the cards before year-end all enhanced consumer sentiment during the month,” it said.

With interest rates at a 15-year high, two potential rate cuts before the end of the year could signal a positive shift to stimulate economic activities, it added.

Before the release of the figures, WesBank said there were clear patterns emerging to indicate the new vehicle market is in the trough of the cycle, which started before the onset of the Covid-19 pandemic.

“The worst is behind us,” said WesBank CEO Ghana Msibi. “What lies ahead is the start of the road to recovery: not robust growth in the initial phase, but rather shallow gains in certain pockets.”

The recovery is assisted by the introduction of new value-orientated brands, a trend he believes will continue as the market attracts more new players from the Far East.

The industry also stands to benefit from the relative stability that has set in since the formation of the government of national unity, as well as the significant improvement in the country’s energy availability factor. Plans to unlock the full potential of the ports are also expected to assist heightened vehicle price inflation, prolonged deterioration of the local currency and marginal economic growth, said Msibi.

Financing cars will become more affordable with interest rate cuts, with WesBank predicting a cumulative 1.25% drop by the end of 2025. It said net saving from all debts, including home loans and credit card debt, will be significant, unlocking more buying power that will benefit car sales.

Toyota retained its market leadership as South Africa’s most popular brand last month, selling 10,656 new vehicles, with Volkswagen (5,645) second and Suzuki Auto third (5,131).

New vehicles — top 15 selling brands in August:

1. Toyota — 10,656
2. Volkswagen — 5,645
3. Suzuki Auto — 5,131
4. Ford — 2,960
5. Hyundai — 2,721
6. Isuzu — 1,961
7. Chery — 1,626
8. Nissan — 1,621
9. GWM — 1,608
10. Renault — 1,367
11. Kia — 1,290
12. Mahindra — 1,011
13. BMW group — 956
14. Stellantis — 603
15. Mercedes-Benz — 504