Following months of steady decline ahead of the general election and subsequent formation of the Government of National Unity (GNU), South Africa’s new vehicle sales finally bounced back in July.
Although the gains were modest, with the market improving by 1.5% versus the same month last year, Naamsa - the Automotive Business Council - said this could be the turning point that leads to an improved performance in the second half of the year.
Passenger cars led the recovery by growing 6.8% year-on-year, with buoyant rental industry sales accounting for 17.1% of the pie, while light commercial vehicle sales dropped by 8.8% versus July 2023. Medium and heavy commercial vehicle sales declined by 6.6% and 3.7% respectively.
Vehicle sales for July totalled 44,229 units, with passenger cars accounting for 29,934 units and light commercials amounting to 11,554. 81.1% of all vehicle sales took place through the dealers.
On the sales charts, the Toyota Hilux - recently bolstered by the introduction of 48V mild hybrid variants - enjoyed its usual dominance with 3,021 sales, leading the Ford Ranger (2.258) and Isuzu D-Max (1,641).
Volkswagen’s Polo Vivo obliterated its passenger vehicle rivals with 2,591 sales. It was followed by the Toyota Corolla Cross (1,547), Hyundai Grand i10 (1,269) and Toyota Starlet (1,222). The latter’s crossover sibling managed an impressive 590 sales despite it being on sale for less than half of the month.
Top 50 vehicle sales: July 2024
- 1. Toyota Hilux - 3,021
- 2. Volkswagen Polo Vivo - 2591
- 3. Ford Ranger - 2,258
- 4. Isuzu D-Max - 1,641
- 5. Toyota Corolla Cross - 1,547
- 6. Hyundai Grand i10 - 1,269
- 7. Toyota Starlet - 1,222
- 8. Volkswagen Polo - 1,211
- 9. Chery Tiggo 4 Pro - 1,153
- 10. Nissan Magnite - 1,052
- 11. Suzuki Swift - 1,045
- 12. Haval Jolion - 868
- 13. Toyota Vitz - 864
- 14. Mahindra Scorpio Pik-Up - 790
- 15. Suzuki Baleno - 772
- 16. Toyota Fortuner - 727
- 17. Suzuki Ertiga - 704
- 18. Toyota Urban Cruiser - 635
- 19. Suzuki Fronx - 620
- 20. Toyota Starlet Cross - 590
- 21. Renault Kiger - 486
- 22. Toyota Hi-Ace - 477
- 23. Nissan Navara - 450
- 24. Kia Sonet - 445
- 25. Hyundai i20 - 424
- 26. Renault Triber - 378
- 27. Suzuki S-Presso - 376
- 28. Nissan NP200 - 353
- 29. Volkswagen Polo Sedan - 341
- 30. Chery Tiggo 7 Pro - 338
- 31. Volkswagen Amarok - 334
- 32. Toyota Rumion - 328
- 33. Volkswagen T-Cross - 322
- 34. Toyota Corolla Quest - 297
- 35. Toyota Land Cruiser PU - 289
- 36. Haval H6 - 285
- 37. Renault Kwid - 284
- 38. Suzuki Jimny - 247
- 39. Ford Territory - 246
- 40. GWM P-Series - 242
- 41. Ford Everest - 241
- 42. Toyota Prado - 238
- 43. Hyundai Venue - 230
- 44. Suzuki Grand Vitara - 226
- 45. Omoda C5 - 224
- 46. Chery Tiggo 8 Pro - 210
- 47. Hyundai H100 Bakkie - 202
- 48. Jaecoo J7 - 198
- 49. Suzuki Celerio - 197
- 50. Kia Picanto - 186
Among the OEMs, Toyota led with 11,131 sales, ahead of Volkswagen’s 6,178, Suzuki’s 4,816 and Ford’s 2,901. Hyundai, Isuzu, Nissan, Chery, GWM and Renault rounded out the top 10.
Top 10 Manufacturers: July 2024
- 1. Toyota - 11,131
- 2. Volkswagen - 6,178
- 3. Suzuki Auto - 4,816
- 4. Ford - 2,901
- 5. Hyundai - 2,699
- 6. Isuzu - 2,072
- 7. Nissan - 1,884
- 8. Chery Auto - 1,701
- 9. GWM - 1,562
- 10. Renault - 1,210
Although South Africa’s new vehicle market currently lags by 6.3% year to date versus the first seven months of 2023, Naamsa said there were many encouraging aspects that could lead to growth in the second half of this year.
These included a stronger exchange rate, four consecutive months of no load-shedding and potentially up to two interest rate cuts before year-end.
Brandon Cohen, Chairperson of the National Automobile Dealers Association (NADA) said July’s sales figures were an encouraging sign.
"Consumers are beginning to visit dealerships more frequently. Confidence in the country and overall sentiment are improving, leading people to gradually return to car purchases.
“However, high interest rates and the unsustainably high cost of living continue to impact vehicle finance accessibility. While there is a clear desire for vehicles, affordability remains a significant barrier," Cohen added.
WesBank Marketing Head Lebo Gaoaketse reiterated that buyers remain under immense pressure, as interest rates are currently at a 15-year high.
“Whilst soft economic growth and inflation data indicate the real possibility now for interest rate cuts, with only two opportunities in September and November, consumers shouldn’t expect big savings to become a reality this year,” Gaoaketse warned.
However the finance institution's higher rate of applications does reflect that some confidence is returning to the market.
IOL Motoring