New-vehicle sales in South Africa stuttered towards the second half of 2023, after two previous years of rebound from the Covid-19 pandemic.
In December the market registered its fifth consecutive month of year-on-year decline, with the 40,329 units dropping 3.3% compared to December 2022.
Total sales increased by only 0.5% year-on-year in 2023 to 532,098 units compared to 2022 and will likely now take four years to recover to the pre-pandemic level of 536,612 units in 2019, says motor industry body Naamsa.
Passenger car sales last year were 347,695 units, a 4.4% decrease from the year before, while sales of light commercial vehicles (including bakkies and minibuses) rose 11.6% to 151,499.
“Amid a depressed economy, elevated cost of living increases and power outages, new-vehicle sales finally yielded to the pressure, with major logistical challenges at the country’s ports towards year-end further undermining the new vehicle market’s ability to fully recover,” said a Naamsa spokesperson.
“On a positive note, heavy commercial vehicle sales already exceeded the pre-pandemic level in 2022, supported by the transport of goods forced onto roads due to the rail inefficiencies.”
These were South Africa's best selling brands in December as new-car sales end 2023 on a low note
Image: Supplied
New-vehicle sales in South Africa stuttered towards the second half of 2023, after two previous years of rebound from the Covid-19 pandemic.
In December the market registered its fifth consecutive month of year-on-year decline, with the 40,329 units dropping 3.3% compared to December 2022.
Total sales increased by only 0.5% year-on-year in 2023 to 532,098 units compared to 2022 and will likely now take four years to recover to the pre-pandemic level of 536,612 units in 2019, says motor industry body Naamsa.
Passenger car sales last year were 347,695 units, a 4.4% decrease from the year before, while sales of light commercial vehicles (including bakkies and minibuses) rose 11.6% to 151,499.
“Amid a depressed economy, elevated cost of living increases and power outages, new-vehicle sales finally yielded to the pressure, with major logistical challenges at the country’s ports towards year-end further undermining the new vehicle market’s ability to fully recover,” said a Naamsa spokesperson.
“On a positive note, heavy commercial vehicle sales already exceeded the pre-pandemic level in 2022, supported by the transport of goods forced onto roads due to the rail inefficiencies.”
The pause in interest rate increases by the South African Reserve Bank during the second half of 2023, as well as the easing in inflation, will continue to provide some support to counter the growing pressures on household incomes, he said.
“Alongside faster economic growth and moderate inflation, lower interest rates would go a long way to support the new vehicle market in 2024.”
Toyota as usual led the way in December as Mzansi’s most popular brand, ahead of Volkswagen and Suzuki.
Top 15 selling brands in December 2023:
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