Naamsa data shows improvement in October new vehicle sales
It is encouraging that sales figures for all segments were higher than a year ago,
This is despite the Transnet strike and the havoc it caused.
The total sales of 45 966 units in October showed a healthy 11.4% increase on the figure for the same month a year ago. The retail dealer channel was responsible for 82.6% of these sales, while the rental industry, gearing up for the holiday season, took a solid 13.1% of the total monthly volume. The remainder of sales in last month went to the government with 2.4% and corporate fleets which were responsible for 1.9% of the reported volume.
It is encouragingly says National Automobile Dealer Association (Nada) that sales figures for all segments were higher than a year ago, with passenger cars up 10.4%, light commercials increasing by 14.3%, medium trucks reporting growth of 29.9%, and heavy trucks and buses gaining 3.7%.
Exports of built-up vehicles improved by 16.1%, which is healthy for the industry as a whole, and a year-to-date total of 292 900 units indicates that the total export figure for 2022 will be well in excess of 300 000 units.
“The market is showing unbelievable resilience in the face of negative economic pressures. We, at Nada, are immensely proud of the way our members keep astounding market commentators with their sales in a market that has been rocked by floods, strikes, rising interest rates, load shedding, high fuel prices, a struggling economy and stock shortages. Their performance is admirable.
“There has been discussion about impending drastic vehicle price rises, but this was discounted, to a degree, by several representatives of major original equipment manufacturers (OEMs) speaking at South African Auto Week at the Kyalami Conference Centre last week, who said they believed price rises would stay below the consumer price index,” said Dommisse.
“We are, however, still expecting increases in the first quarter of 2023 which could slow sales and influence OEMs to incentivise more heavily as they fight for market share. We believe used vehicle pricing will become more realistic as stock levels grow and write-backs become more commonplace,” concluded the Nada chairperson.
Source: Ilana Salant/Meropa
