Johannesburg, 3 July 2023: “A consistent stream of new and updated models, particularly in significant high-volume segments, along with improved availability of popular models, appeared to be crucial factors in sustaining the growth trajectory of new vehicle sales in South Africa,” commented Gary McCraw, Director of the National Automobile Dealers’ Association (NADA), after studying the June retail sales figures distributed by naamsa today.

McCraw highlighted that another positive aspect that influenced the market was the enhanced supply of new vehicles, which fostered competition among various brands. Furthermore, buyers, many of whom had been waiting for their new vehicles for quite some time, benefited from numerous aggressive sales assistance programmes.

“It is indeed pleasing to observe that the total market reached 46,810 units in June, representing a remarkable 14% increase compared to the same month last year. However, it is important to note that a year ago, the Toyota plant in Durban was incapacitated due to flood damage, which had an impact on overall sales volume.

 “Nevertheless, witnessing continued growth in the current challenging economic environment is encouraging, given that vehicle buyers are facing affordability pressures, a depreciating Rand that drives prices higher, low business confidence, and political instability. Fortunately, consumer inflation slowed to 6.8% in April, marking the lowest rate since May 2022. Additionally, the decreased frequency of power outages has provided a morale boost,” added McCraw.

Dealers accounted for a slightly smaller share of the retail market than usual, at 83.5%, while rental sales played a significant role, comprising 10% of total sales and 13.4% of the passenger car market, indicating good activity in the car rental space as the fleets start to grow for the July and December holiday seasons. Government sales represented 3.5% of the total, and sales to corporate fleets accounted for 3%.

NADA finds it gratifying to observe growth across all market segments, as well as overall growth. Passenger car sales experienced a modest increase of 0.8%, which is still a positive development.

 “Meanwhile, sales in the buoyant light commercial vehicle segment surged by 57.1%, with Toyota being the major contributor. Medium truck sales rose by 8.2%, and heavy trucks and buses reported a substantial increase of 19.6%,” said McCraw.

“Generally, sentiment towards making major purchases remains slightly negative in South Africa, as consumers grapple with the effects of high interest rates. Looking ahead, if we can maintain the current rate of power outages, continue to experience a drop in inflation, and benefit from the recent relief in petrol prices, sentiment may gradually improve. This, in turn, could lead to increased dealer sales as more new models become available and, hopefully, sales assistance persists,” concluded the NADA Director.

 

NADA is a proud constituent association of the Retail Motor Industry Organisation (RMI).

ENDS

 

ABOUT NADA

The National Automobile Dealers’ Association (NADA) is a professional body representing the interests of business persons who own, operate and manage new passenger and commercial vehicle franchise motor dealerships and qualifying used vehicle only outlets in South Africa. There are currently 1,380 NADA members. NADA members make up 85% of all new franchise dealerships in South Africa. South Africa currently has approximately 1,600 new franchised automotive dealerships comprising approximately R50-billion worth of investment. It employs 58,000 personnel directly and a further 25,000 indirectly.

NADA is a proud constituent association of the Retail Motor Industry Organisation (RMI) and has affiliations with a number of similar organisations world-wide. NADA is committed to enhancing the image of the retail motor business; facilitating the interface between dealers and the motor manufacturers and importers who supply them; building rewarding relationships between dealers and their customers; and bringing relevant issues facing its members to the attention of government at all levels.

As a major role player in the automotive industry, NADA and its members are strong supporters of complying with the Retail Motor Industry Organisation and the Consumer Protection Act’s Codes of Conduct for the Automotive Industry. In all forums, NADA is the fully representative and respected voice of the retail motor industry in South Africa.

PLEASE NOTE: This content is relevant for the month of July 2023. Please contact Meropa Communications for any updates if the content is going to be utilised thereafter.

Issued for and on behalf of NADA by:

Meropa Communications

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Ilana Salant – Meropa Communications

E-mail: ilanas@meropa.co.za