SA automotive sales stumble as export challenges intensify

Source: Unsplash

Year-to-date data reveals that new vehicle sales in South Africa reached 401,169 units by September 2024, reflecting a decline of -5.8% compared to the same period in 2023.

Similarly, exports fell to 289,198 units, showing a significant drop of -19.7%. A key factor in this export decline is the waning demand for models nearing the end of their production cycles, compounded by stricter environmental regulations in key global markets.

These combined pressures have tempered growth in an industry poised for recovery amid shifting dynamics.

Out of the total industry sales of 44,081 vehicles, an estimated 34,830 units, or 79%, represented dealer sales. An estimated 15% were attributed to sales in the vehicle rental industry, 3% to government, and 2% to corporate fleet sales.

The new passenger car market in September 2024, at 30,218 units, registered an increase of 112 cars, or a rise of 2%, compared to the 29,626 new cars sold in September 2023. Sales to the car rental industry accounted for a substantial 28% of new passenger vehicle sales during the month.

Domestic sales of new light commercial vehicles, bakkies, and mini-buses at 10 914 units in September 2024 recorded a decrease of 2,257 units, or a loss of 17,1%, from the 13,171 units sold in September 2023.

In the medium and heavy truck segments, sales presented a mixed performance.

Medium commercial vehicles saw an increase to 821 units, reflecting a gain of 4 units or 0,5%, compared to the 817 units sold in September 2023.

However, heavy trucks and buses experienced a decline, with a decrease of 314 units or 18% compared to the 1,849 units sold in the same month last year.