August 2024 vehicle sales in South Africa declined compared to the corresponding time in 2023. Picture: iStock
The latest vehicle statistics by the National Association of Automobile Manufacturers of South Africa (Naamsa) show there has been a decrease in sales for August 2024.
The stats released on Monday show that domestic new vehicle sales decreased by 2,266 units, compared to the 45,854 units sold in August of 2023.
The Automotive Business Council said the positive July 2024 new vehicle market performance could not fuel a sustained rebound in the August 2024 sales performance.
In a statement, the Council said they have also noticed a decrease in export sales by 14,658 units, this is as there were 28,073 units exported while in August 2023 there were 42,731 vehicles exported. “For the year to date, vehicle exports were now 16,8% below the corresponding period 2023.”
However, most of the vehicles’ sales can be attributed to dealer sales. “Overall, out of the total reported industry sales of 43,588 vehicles, an estimated 35,503 units represented dealer sales,” read the statement.
While 12,4% of the sales were made to the vehicle rental industry. Out of the overall reported industry sales, 3,3% were made to government, and 2,8% to industry corporate fleets.
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When it comes to the new passenger car market for August 2024, the council said they saw an increase of 891 cars, compared to the 29,131 new cars sold in August 2023. “Car rental sales accounted for a sound 16,7% of new passenger vehicles sales during the month.”
When it comes to the domestic sales of new light commercial vehicles, the stats show bakkies and mini-buses at 10,709 units during August 2024, which is a decrease of 2,941 units, compared to the 13,650 light commercial vehicles sold during August 2023.
According to the stats, sales for medium trucks saw an increase, while heavy trucks saw a decrease. Medium truck sales sit at 748 units, which is an increase of 56 units from the 692 units sold in August 2023. When it comes to heavy truck sales, there is a decrease of 272 units, compared to 2,381 units sold in August 2023.
According to the stats, the top-selling vehicle brand was Toyota followed by Volkswagen. Mercedes-Benz sold fewer vehicles compared to BMW
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The Automotive Business Council added it is encouraging to see the volume passenger car segment trend upward over the past two months. They believe this can be attributed to 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.
“There is recognition that with interest rates at a 15-year high, two potential rate cuts before the end of the year, reducing the cost of borrowing, would not materially improve vehicle affordability challenges and household debts over the short term, but it would signal a positive shift to stimulate economic activities.”
The continuous decline in vehicle exports can be attributed to the declining exports to Europe due to weak regional economic activity.
“However, Eurozone inflation fell to 2,2% in August 2024, its lowest level in more than three years thanks to falling energy costs, raising expectations of a further European Central Bank interest-rate cut in September 2024,” added the Automotive Business Council.
The council said vehicle exports to the US reflected a substantial increase of 132,0% for the year to date compared to the corresponding period in 2023. An easing of monetary policy in the industry’s main export markets bodes well in contributing to an improved performance for the balance of the year.
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