The Automotive Business Council, also known as Naamsa, has released the country’s official vehicle sales figures for December 2022. According to Naamsa, the new vehicle market’s performance during 2022 is still reassuring but is still growing at a slower pace than in 2021.
Following a fairly upbeat first quarter 2022 industry performance, global supply chain disruptions along with the impact of the devastating floods in KwaZulu-Natal, elevated inflation, an upward trend in interest rates, record fuel prices, as well as record highs in the frequency and intensity of load shedding weighed heavily on both business and consumer confidence. However, the new vehicle market’s performance in 2022 remained resilient despite the multiple national and international headwinds.
The new vehicle market registered its twelfth consecutive month of year-on-year growth during December 2022. With aggregate industry new vehicle sales at 41 783 units, recording an increase of 5 839 vehicles or a gain of 16,2% compared to the total new vehicle sales of 35 944 units during the corresponding month of December 2021. The December 2022 new passenger car market and light commercial vehicle market reflected a sound performance with a year-on-year volume increase of 15,4% in the case of new passenger cars and a gain of 16,1% in the case of light commercial vehicles. Sales of medium commercial vehicles increased year-on-year by 36,9% while heavy commercial vehicles and buses increased by 23,1%.
Export sales in December 2022 ended the year on a positive note and at 26 302 units reflecting a gain of 5 130 vehicles or an increase of 24,2% compared to the 21 172 vehicles exported during December 2021. Out of the total reported industry sales of 41 783 vehicles, an estimated 37 479 units or 89,7% represented dealer sales, an estimated 7,3% represented sales to the vehicle rental industry, 1,5% to government and 1,5% to industry corporate fleets.
Global economic conditions have deteriorated significantly given persistently high inflation and aggressive interest rate hikes in many advanced and developing countries. The risks to export sales therefore reside on the downside for 2023, but growth prospects for domestic vehicle exports remain optimistic on the back of several new model introductions by major vehicle exporters.
