The South African automotive industry’s refusal to deal with its current economic challenges continued unabated in February with a record fourteen-fold increase in new vehicle sales.
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As in the previous month, Toyota remained at the top with sales of 11,560 units, followed by main rivals Volkswagen (5,288), Suzuki (4,309), Nissan (3,172) and Hyundai (2,715). Behind the top five come Ford (2 499), Renault (2 112), Isuzu (2 057), Kia (1 843) and Haval (1 538).
In announcing its latest figures, the National Association of Automotive Manufacturers of South Africa (NAAMSA) recorded a 2.6% increase in sales from last year’s 44 224 units, to 45 352 this year.
Although smaller than the year-over-year percentage calculated in January, the overall February total was still an increase of 1,843 units.
In the various segments, the news is mostly positive continues with the sales of new passenger vehicles increasing, but only, by 1.1% from 29 657 to 29 976 and light commercial vehicles by 5.5% more substantial from 12 289 to 12 972.
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The decline in sales of medium-duty commercial vehicles from 517 in February last year to 435 units this year was also disappointing. Heavy-duty commercial sales did the opposite, with an increase of 58 units from 1 186 to 1 244.
For the second time this year, the export of new vehicles fell into the red with a decrease of 11.5% from 2022 34 352 to 30 409 in 2023.
NAAMSA responded
“The South African Reserve Bank’s decision to increase interest rates for the eighth time in a row is a reminder that South Africa, like the rest of the world, is still in the midst of a projected increase in the cost of living due to geo-political events such as the Russia/Ukraine conflict, the lingering effects of from the Covid-19 pandemic, and the global inflationary environment,” NAAMSA said in a statement.
“Additionally, consumer spending and household discretionary income continue to shrink with rising fuel costs, electricity costs and many other basic costs that directly affect our motorists’ vehicle sales decisions”.
The association also expressed its dismay at the lack of government support for new energy vehicles (NEVs), which include hybrids and EVs, which it described as “dampening the spirit of the sector”.