[imagesource:wikimediacommons]

South Africa’s new vehicle sales started in 2024 on a downward slope, with a sixth consecutive decrease in January.

A total of 41,636 units were sold in January 2024 in comparison to 43,294 for the same period in 2023. These figures by the National Association of Automobile Manufacturers of South Africa (Naamsa) show an overall decrease of 3.8%.

Naamsa attributes these sloping numbers to escalating living costs, the chaos at the country’s ports, higher interest rates, and the energy crisis, per The Citizen.

Somehow, new passenger vehicle sales ended the month in the red with a downturn of 6.7% from 30,863 to 28,890. Meanwhile, light commercial vehicle sales totalled 10,871 units, an increase of 2.3% from 2023’s 10,623, with medium-duty commercial vehicles recording the biggest uptake of 13.3% from 459 to 520. Heavy-duty commercial vehicles climbed 7.9% to settle at 1,455 units versus the 1,349 of last year.

Then, new vehicle exports turned the other cheek in January after a small uptake in December, with a drop of 2.1% from 20,684 to 20,242.

“The weak performance of the new vehicle market in January 2024 remained intricately linked to the major economic headwinds that shaped the market’s performance in 2023,” Naamsa remarked in a statement.

“South Africa’s economic growth outlook for 2024, at 1.2%, although stronger than in 2023, remains a key challenge for the new vehicle market going forward in view of the close correlation between new vehicle sales and the GDP growth rate.

Commenting on the country’s export figures, CEO Mikel Mabasa remarked that vehicle exports slightly declined year-on-year in January 2024.

“Several global externalities remain persistent, creating an uncertain backdrop for the year ahead, including sluggish global growth, a bullish inflationary environment and increased geo-political tensions”.

He, however, added, “The global economy is expected to remain weak in 2024, but inflation is easing and interest rate cuts in major markets may be on the cards in the second half of the year, which would support the South African automotive industry’s export performance”.

Naamsa concluded that the year is also marked by elections, “not just in South Africa but also in other major markets, introducing an element of economic uncertainty”.

Out of the country’s best-selling brands, an unchanged top three from December prevailed, with Toyota finishing ahead of Volkswagen with sales of 10,855 versus 5,522, while Suzuki placed third on 5,235.

Then, only three automakers feature in the top five list of best-selling SA vehicle sales for January 2024:

Ending the month on top for a 12th straight time, the Toyota Hilux led home an unchanged top four from December with its offset of 2 665 units seeing it finish ahead of the Volkswagen Polo Vivo (2 034), Ford Ranger (1 914) and Toyota Corolla Cross (1 660).

Image: Naamsa

Two bakkies feature on the list, namely the Toyota Hilux and Ford Ranger, proving that SA drivers still know where their hearts are.

[source:citizen]