New vehicle exports in South Africa have seen a significant decline in sales throughout the month of July this year. Compared to last month’s result, the number is down 33,1 per cent but with regards to year-to-date, this figure is promising.
With a total of 16 931 units being shipped abroad across manufacturers this month, Naamsa notes a decrease compared to last month’s figure of 25 312 units. Compared to July 2020 however, it is noted that an increase of 47,3 per cent has been experienced for new vehicle exports. It’s suggested that the adjusted alert level four lockdown restrictions placed on South Africa for the most of July together with the civil unrest and the cyber-attack on Transnet is to blame for this glaring decrease in performance.
“The devastating economic impact and unintended consequences of these actions not only caused a setback in the fight against the COVID-19 pandemic but could prolong the economic recovery process and also have a lasting impact on the country’s challenges of dealing with poverty, inequality, and unemployment”, said Naamsa CEO Mikel Mabansa,
“Physical damages to assets and property, lost sales orders as well as the cancellation of new developments in the automotive industry are estimated at well over R3 billion. Businesses and consumers already had to brace themselves for the significant price hikes in key living costs such as electricity, fuel, and municipal rates and taxes during July 2021.”
Where new vehicle sales in our market are concerned, Naamsa notes a total of 32 949 units sold which translates to a 544 unit of 1,7 per cent increase over last year’s figure of 32 405. Overall, out of the total reported industry sales, an estimated 28,326 units, or 86,0 per cent, represented dealer sales, an estimated 9,2 per cent represented sales to the vehicle rental industry, 2,7 per cent to industry corporate fleets and 2,1 per cent sales to government.
The July 2021 new passenger car market at 20 575 units had registered an increase of 1 719 cars, or a gain of 9,1 per cent, compared to the 18 856 new cars sold in July 2020. The car rental industry supported the new passenger car market during the month and accounted for 11,9 per cent of car sales in July 2021.