Chery proved to be the biggest surprise of January by featuring in the top 10 brands at the expense of Kia. Image: Chery
In continuation from 2023, South Africa’s new vehicle sales started in 2024 on a downward slope, with a sixth consecutive decrease in January.
Ending the month on top for a 12th straight time, the Toyota Hilux led home an unchanged top four from December with its offset of 2 665 units seeing it finish ahead of the Volkswagen Polo Vivo (2 034), Ford Ranger (1 914) and Toyota Corolla Cross (1 660).
Making up four positions from December, the Suzuki Swift placed fifth on 1 556 ahead of the Toyota Starlet (1 479) as the only non-South African assembled vehicles within the top 10.
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Staying steady in seventh place, the Isuzu D-Max raked in sales of 1 336, while the Toyota HiAce dropped two slots from December to finish eighth on 1 129.
Completing the top 10, the Volkswagen Polo improved seven positions from 16th to settle on 1 079, with the Toyota Fortuner jumping two spots to finish 10th on 974.
Attributing the less than ideal start to the year to escalating living costs, the chaos at the country’s ports, higher interest rates, and the energy crisis, the figures by the National Association of Automobile Manufacturers of South Africa (Naamsa) showed an overall decrease of 3.8% from 2023’s 43 294 to 41 636.
Curiously, only new passenger vehicle sales ended the month in the red with a downturn of 6.7% from 30 863 to 28 890.
Going the other way, light commercial vehicle sales totalled 10 871 units, an increase of 2.3% from 2023’s 10 623, with medium-duty commercial vehicles recording the biggest uptake of 13.3% from 459 to 520.
Not as substantial as its step-down segment’s uptake, heavy-duty commercial vehicles clawed back 7.9% to settle at 1 455 units versus the 1 349 of last year.
After a small uptake in December, new vehicle exports turned the other cheek in January, with a drop of 2.1% from 20 684 to 20 242.
“The weak performance of the new vehicle market in January 2024 remained intricately linked to the major economic headwinds that shaped the market’s performance in 2023,” Naamsa remarked in a statement.
“South Africa’s economic growth outlook for 2024, at 1.2%, although stronger than in 2023, remains a key challenge for the new vehicle market going forward in view of the close correlation between new vehicle sales and the GDP growth rate.
“The year is also marked by elections, not just in South Africa but also in other major markets, introducing an element of economic uncertainty,” Naamsa concluded.
Commenting on the country’s export figures, CEO Mikel Mabasa remarked, “Following a record export performance in 2023, vehicle exports slightly declined year-on-year in January 2024.
“Several global externalities remain persistent, creating an uncertain backdrop for the year ahead, including sluggish global growth, a bullish inflationary environment and increased geo-political tensions”.
He, however, added, “The global economy is expected to remain weak in 2024, but inflation is easing and interest rate cuts in major markets may be on the cards in the second half of the year, which would support the South African automotive industry’s export performance”.
Out of the country’s best-selling brands, an unchanged top three from December prevailed, with Toyota finishing ahead of Volkswagen with sales of 10 855 versus 5 522, while Suzuki placed third on 5 235.
Taking fourth, Ford outnumbered Nissan on 2 420 compared to 2 315, with Hyundai slipping to sixth on 2 185 units sold.
Improving two places to seventh from December, Isuzu recorded sales of 1 610 and eighth place Haval 1 463.
Pushing Kia out of the top 10, Haval’s main Chinese rival, Chery, entered the top 10 for the first time in months with sales of 1 463 units, a scant 14 ahead of Renault’s 1 411.
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