According to up-to-date consumer reports collected from the latest sales data by National Association of Automobile Manufacturers of South Africa (NAAMSA), the new automotive market in South Africa witnessed an increase of 4.6% in total car sales in October, 2017.
South Africa new automotive market witnessed an increase of 4.6% in total car sales in October, 2017
This growth can be considered as a marked increase in the development of African auto market in general and of South Africa auto market in particular. In reality, however, there was a slight decrease of 0.8% in dealer channel which allegedly reflects the actual performance of the market. Thankfully, car rental market showed an upsurge of 19% in October while single unit sales (mostly in public sector) also went up by 10%.
Car rental market showed an upsurge of 19% in October
Year-to-date, the auto industry is growing well, to be frank. In detail, in the context of sustained economic and political uncertainty, low economic growth rate along with low business and consumer confidence, the industry remains a mild growth of 1.7% (with dealer sales rising 1.2%).
All things considered, we can see that the car market growth is uneven among segments in October, 2017. This might be due to an array of factors, for example:
- Increased marketing incentives from car companies and dealerships
- Slowing sales in used car market
- Decreasing stock levels
- Higher price inflation
Concerning each segment, both Commercial Vehicle and Light Commercial Vehicle (LCV) segments recorded a 4.5 and 1.7% drops, respectively, accurately representing the shortage of investment in capacity building amongst businesses.
Commercial Vehicle and Light Commercial Vehicle segments recorded a drop in sales
According to Group CEO of WesBank Chris de Kock, the future auto market would likely track sideways when South Africa confronts key political moments. He also added that higher fuel prices caused by increased oil prices will likely affect the auto industry. Nevertheless, we do believe that the industry will overcome all upcoming difficulties and challenges.
Now, let’s sum up what fruits South Africa gained in October:
- Total new vehicle sales: 51,037 vehicles, up 4.6% (over the same period in 2016).
- New car sales at 35,316 vehicles, up 7.9%. Car rental industry made up around 26.1% of new car sales.
- Domestic sales of new LCV at 13,376 vehicles, down 1.7%.
- Export sales: 28,229 vehicles, down 8.3%.