Following eight consecutive months of sales decline, the milestone of celebrating a century of vehicle production locally saw a welcomed increase in the motor industry for April 2024. Have a look at the data below, which sees Toyota drop in sales but retain the top spot, with Suzuki moving into second and Nissan dropping to the bottom of the list without the NP200 rolling off of the production line.
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South Africa is marking 2024 as a significant year for its automotive industry, celebrating 100 years of car manufacturing. Mikel Mabasa, CEO of naamsa, the country’s automotive business council, commented, “As the sun rises on a century of automotive innovation, South Africa proudly commemorates a century of automobile manufacturing excellence. This milestone reflects a journey of resilience, ingenuity, and passion that has shaped the nation’s automotive legacy.” Details on how the industry will commemorate this milestone will be announced later in May 2024.
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The automotive industry received a positive boost in April 2024, with new vehicle sales showing growth after eight consecutive months of decline. Aggregate domestic new vehicle sales reached 38 172 units, an increase of 814 units (2.2%) from the 37 358 vehicles sold in April 2023. However, export sales saw a significant drop of 7 355 units (23.9%), down to 23 394 units compared to the 30 749 vehicles exported in April 2023.
Out of the total reported industry sales of 39 016 units, an estimated 89.9% were dealer sales, while 5% were to the vehicle rental industry, 2.7% to government, and 2.4% to corporate fleets. The new passenger car market in April 2024 registered an increase of 1 493 cars (6.1%) compared to the previous year, with car rental sales accounting for 6.6% of new passenger vehicle sales. On the downside, domestic sales of new light commercial vehicles, bakkies, and minibuses fell to 9 646 units, a decrease of 953 units (9.0%) from the 10 599 sold in April 2023.
The positive performance in the new vehicle market during April 2024 was likely supported by a full month with no load-shedding, which positively impacted business conditions. However, economic factors such as interest rates, unemployment, GDP growth, disposable income, and exchange rates continue to be key drivers affecting vehicle sales. As interest rates rise, affordability becomes a challenge for many consumers, leading to a shift toward more budget-friendly and smaller vehicles, SUVs, crossovers, and light commercial vehicles.
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The South African vehicle market is expected to improve after the May 2024 national elections and once the interest rate cutting cycle begins, likely in the second half of the year. On the export side, growth prospects remain uncertain due to global economic challenges, including inflation risks, the conflict in the Middle East, and climate change. To mitigate these risks, the export-oriented South African automotive industry must continue diversifying by exploring broader geographical exposure, reducing the impact of regional economic fluctuations.
Top 10 Best Selling Brands for April 2024
- Toyota – 8 541
- Suzuki Auto – 4 891
- Volkswagen – 4 758
- Ford – 2 614
- Hyundai – 2 134
- Chery Auto SA – 2 009
- Isuzu – 1 540
- GWM SA – 1 493
- Nissan – 1 443
- Renault – 1 307
In terms of manufacturers, Toyota remains in the top spot, despite a dip in sales from the automotive giant. Managing to take top spot in both passenger and LCV segments, with the Hilux managing a total of 2 094 units alone, Toyota is still well ahead of the second position which in April 2024 was Suzuki, who managed to pip Volkswagen by a handful of units. The Top 10 list has retained the same automakers from March however Nissan saw a dip from 3 995 units in the previous month, likely courtesy of the lineup gap created by the now defunct NP200.
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