In what can be described as a glimmer of hope, new-vehicle sales for October indicate an increase on the previous month’s figures as well as during the same month last year. It also represents the highest growth on a month-to-month basis since 2019.
Reflecting on these numbers, Mikel Mabasa, CEO of naamsa (The Automotive Business Council) says it is a positive start to the last quarter of 2024 (Q4).
“With the highest sales month of the year, including the highest passenger car sales month since October 2019, it is encouraging for the medium-term new-vehicle market outlook,” according to Mikel.
He says the aggregate domestic new-vehicle sales in October 2024, at 47 942 units, reflected an increase of 2 506 units, or a gain of 5.5%, from the 45 418 vehicles sold in October 2023. Compared to September 2024 some 3 929 more vehicles were sold.
Of these sales, approximately 38 520 units, or 80.4%, were attributed to dealer transactions, underscoring the vital role of franchised dealerships in supporting market stability and growth.
In his reaction, Brandon Cohen, Chairperson NADA (National Automobile Dealers’ Association), says while October's results show promising signs, the year-to-date (YTD) figures reveal a more complex picture.
“Passenger vehicle sales reached 286 398 units YTD, marking a slight decline of 1.4% compared to the same period in 2023.
“Light Commercial Vehicles (LCVs), including bakkies and minibuses, saw an 11.7% decrease, totalling 113 300 units YTD.
“Medium Commercial Vehicles recorded a 7.8% drop to 6 342 units, while Heavy Trucks and Buses declined by 4.7% to 19 766 units,” he says.
Brandon continued by describing the current economic landscape as remaining a challenge for consumers, although inflationary pressures have shown a positive decrease over the past few months and interest rates are trending downwards.
“Affordability is still a concern for buyers. This pressure is evident nationwide. We are also witnessing competitive Chinese brands gaining traction, offering consumers affordable alternatives that are reshaping the market,” Brandon concludes.
On the negative side, export sales decreased by 17 324 units, or 42.6%, to 23 342 units in October 2024 compared to the 40 666 vehicles exported in October 2023, naamsa’s Mikel says in a statement.
“The October 2024 export sales, at 23 342 units, reflected a decrease of 17 324 vehicles, or a loss of 42.6%, compared to the high-based 40 666 vehicles exported in October 2023. For the first 10 months of the year, vehicle exports were 23.1% below the corresponding period of 2023.
“The downward slide in vehicle exports continued during the month in line with declining exports to Europe as the domestic automotive industry’s top export region, accounting for three out of every four vehicle exports.
“Growth in the European Union stood at 0.3% after three quarters in 2024 with Germany projected to end 2024 with a 0.2% contraction. A model change by a major local OEM, stricter emissions regulations in the region as well as an influx of cheaper electric vehicles from China all impacted on vehicle exports to the region in 2024. An easing of monetary policy in key export markets could see the vehicle export momentum turn positive again over the medium term,” Mikel concludes.
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You can't buy happiness but you can buy cars and that's kind of the same thing.
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