New-vehicle sales in South Africa experienced another modest decline of 4.1% to 44,081 units in September, driven mostly by continuing weakness in the light commercial market.
Sales of light commercials, including bakkies and minibuses, recorded 10,914 units last month, a 17.1% decline compared to September 2023. Passenger cars rose 2% to 30,218 units, with sales to the car rental industry accounting for a substantial 28%.
Medium commercial vehicles increased 0.5% to 821 units, while heavy trucks and buses declined 18% to 1,535 units.
In a year marked by economic fluctuations, year-to-date sales of 401,169 units declined 5.8% compared to the same January-September period in 2023, said motor industry body Naamsa.
“Economic indicators in September 2024 showed positive trends, including the first interest rate cut in four years by the SA Reserve Bank, a stronger rand and easing inflation below the mid-point of the central bank’s target range,” said Naamsa CEO Mikel Mabasa.
“Lower fuel prices further bolstered consumer confidence, offering relief to household budgets. Although the July 2024 market rally did not continue in August, the passenger car segment has shown a positive trend in recent months, boosted by rental sales, currency strength and decreasing inflation.”
Mabasa said with further rate reductions, the costs of borrowing are expected to decline , which may stimulate economic activity, even though immediate improvements in vehicle affordability may be limited.
“Since the decline in new vehicle sales began in August 2023, expectations are rising that the new vehicle market could see improvement for the remainder of the year, due to favourable economic conditions and the comparison to last year’s lower base levels,” he said.
Toyota retained its position as South Africa’s most popular brand in September, selling 10,890 new vehicles ahead of second-placed Volkswagen Group (5,885) and Suzuki Auto (5,023). Hyundai was fourth with 2,841 units followed by Ford (2,823), Isuzu Motors (1,960), GWM (1,740), Chery (1,614), Renault (1,426), Nissan (1,425), Kia (1,284), Mahindra (1,014), BMW Group (961), with Mercedes-Benz (535), and Omoda and Jaecoo (506) rounding out the top 15.
These are SA’s best-selling car brands in another sluggish month
Although the July market rally did not continue in August, the passenger car segment has shown a positive trend in recent months, according to Naamsa
New-vehicle sales in South Africa experienced another modest decline of 4.1% to 44,081 units in September, driven mostly by continuing weakness in the light commercial market.
Sales of light commercials, including bakkies and minibuses, recorded 10,914 units last month, a 17.1% decline compared to September 2023. Passenger cars rose 2% to 30,218 units, with sales to the car rental industry accounting for a substantial 28%.
Medium commercial vehicles increased 0.5% to 821 units, while heavy trucks and buses declined 18% to 1,535 units.
In a year marked by economic fluctuations, year-to-date sales of 401,169 units declined 5.8% compared to the same January-September period in 2023, said motor industry body Naamsa.
“Economic indicators in September 2024 showed positive trends, including the first interest rate cut in four years by the SA Reserve Bank, a stronger rand and easing inflation below the mid-point of the central bank’s target range,” said Naamsa CEO Mikel Mabasa.
“Lower fuel prices further bolstered consumer confidence, offering relief to household budgets. Although the July 2024 market rally did not continue in August, the passenger car segment has shown a positive trend in recent months, boosted by rental sales, currency strength and decreasing inflation.”
Mabasa said with further rate reductions, the costs of borrowing are expected to decline , which may stimulate economic activity, even though immediate improvements in vehicle affordability may be limited.
“Since the decline in new vehicle sales began in August 2023, expectations are rising that the new vehicle market could see improvement for the remainder of the year, due to favourable economic conditions and the comparison to last year’s lower base levels,” he said.
Toyota retained its position as South Africa’s most popular brand in September, selling 10,890 new vehicles ahead of second-placed Volkswagen Group (5,885) and Suzuki Auto (5,023). Hyundai was fourth with 2,841 units followed by Ford (2,823), Isuzu Motors (1,960), GWM (1,740), Chery (1,614), Renault (1,426), Nissan (1,425), Kia (1,284), Mahindra (1,014), BMW Group (961), with Mercedes-Benz (535), and Omoda and Jaecoo (506) rounding out the top 15.
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