Triton brings the challenge to competitors
The bakkie war has intensified with the local launch of Mitsubishi’s next-generation Triton, an evolution in the iconic bakkie’s 46-year legacy.
- Product News
- 21 November 2024
Sales of new vehicles are continuing to gradually improve from the impact of the COVID-19 lockdown, with aggregate domestic sales declining by 13.9% to 34 784 units in January 2021 from the 40 413 vehicles sold in January 2019.
National Association of Automobile Manufacturers of South Africa (Naamsa) CEO Mikel Mabasa said the decline in total new vehicle sales last month, compared with the pre-COVID-19 first month of 2020, was in line with industry expectations.
Mabasa said although the current low interest rates, coupled with low inflation, could be regarded as building blocks to stimulate the new vehicle market, a full recovery to pre-COVID-19 new vehicle sales levels could take around three years.
“The 2020 new vehicle market recorded its lowest aggregate sales total in 18 years. The macroeconomic effects of COVID-19 will therefore continue to undermine business and consumer confidence and inhibit growth over the medium term,” he said.
Mabasa said trading conditions in the new vehicle market in the first quarter of 2021 are expected to remain challenging due to slow demand compared with the pre-COVID-19 first quarter in 2020, exchange rate volatility and the negative impact on household expenditure of fuel and electricity price increases.
However, Mabasa said considering the close correlation between new vehicle sales and the country's GDP growth rate, the Reserve Bank’s forecast of a domestic economic growth rate of 3.6% for 2021 "presents a favourable scenario for a sound rebound of the new vehicle market in 2021 from the exceptional low base in 2020”.
Naamsa reported that an estimated 28 716 units or 82.6% of the overall total reported industry sales of 34 784 vehicles represented dealer sales.
Download an infographic of the vehicle sales here
The vehicle rental industry accounted for an estimated 11.4% of overall sales, government 3.5% and industry corporate fleets 2.5%.
Sales of new passenger cars declined by 18.0% or 5 220 cars in January 2021 from the 29 073 new cars sold in January 2020.
The car rental industry accounted for 16.1% of car sales in January 2021.
Domestic sales of new light commercial vehicles, bakkies and mini-buses dropped by 4.9% year-on-year in January 2021 to 9 301 units while medium commercial vehicles at 497 units showed zero change and heavy truck and bus sales increased by 6.6% to 1 133 units.
Export sales of domestically produced vehicles grew for a second consecutive, increasing by 39.7% or 6 468 units in January 2021 to 22 771 units from the 16 303 vehicles exported in January 2020.
Mabasa said vehicle export numbers have been regaining momentum but a recovery will depend largely on an improvement in the economic climate of the South African automotive industry’s main trading partners.
“Vehicle exports are important to the viability of the domestic automotive industry as exporting remains key to generate sufficient economies of scale and to achieve improved international competitiveness,” he said.
The bakkie war has intensified with the local launch of Mitsubishi’s next-generation Triton, an evolution in the iconic bakkie’s 46-year legacy.
Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
JAC Motors added ABS (Anti-lock Braking System) to its X200 2.8L TDI 1.5-tonne single-cab, enhancing safety for both the crew and cargo. This latest upgrade complements the ABS-equipped X200 1.3-tonne double-cab targeted at organisations with labour-intensive crews.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
Leading used car trader, WeBuyCars, which listed on the JSE in April this year, is expanding its business focus to include third party sales and is rapidly expanding its vehicle supermarket and buying pods presence in South Africa.
The Isuzu Foundation, in collaboration with IRONMAN4theKidz, donated R250 000 to three Mossel Bay charities dedicated to uplifting vulnerable youth, families and individuals in need.
Hino South Africa has handed over four mobile offices to the Gauteng Government Roads and Transport Department, which are to be used as Smart Driving Licensing Testing Centres by the Road Traffic Management Corporation (RTMC).