The South African new vehicle market recorded its second consecutive month of growth in November 2024, sparking optimism about a potential sustained recovery in the sector – possibly a little dampened by the fuel price hike that came into effect this month.
According to naamsa | The Automotive Business Council, aggregate domestic new vehicle sales reached 48 585 units, an 8 1% increase from November 2023. This marked the strongest sales month of the year and the highest year-on-year growth, buoyed by robust consumer demand and strong contributions from the rental market.
Passenger vehicle sales emerged as the standout performer, surging by 20% to 35 101 units and the rental industry played a key role in this growth, accounting for 19,5% of new passenger car sales, roughly one in five purchases. The uptick reflects improved consumer sentiment, fuelled by falling inflation rates and a second 25-basis-point interest rate cut by the South African Reserve Bank.
Now is the ideal time to search for your perfect car - click here
Toyota had a particularly stellar month, selling 12 106 units, a milestone that solidified its 24,9% market share and Senior Vice President of Sales and Marketing, Leon Theron, highlighted this as a key indicator of economic improvement: "Breaching the 12 000 sales mark is a clear signal that the economy is looking up. However, year-to-date sales remain 3,5% lower than last year, indicating that sustained effort is needed for a full recovery."
In contrast, commercial vehicle sales reflected ongoing economic challenges. Light commercial vehicle sales dropped by 16,3% to 10 827 units from 12 937 in November 2023. Medium commercial vehicles (MCVs) declined by 9 2%, while heavy trucks and buses showed marginal resilience, slipping only 0,5%.
National Automobile Dealers’ Association (NADA) Chairperson Brandon Cohen noted the mixed signals in the market: “While the passenger car market performed strongly, the commercial vehicle sector remains subdued, reflecting cautious business sentiment.”
Are you a student or first-time buyer? Check out these very special offers.
Exports painted a bleaker picture, with sales plummeting by 28,6% year-on-year to 30,431 units. This represents a decrease of 12 210 units compared to the 42 641 vehicles exported in November 2023. Cumulatively, exports for the first 11 months of 2024 are 23,9% lower than the same period in 2023, underscoring the challenges posed by global economic headwinds.
Despite interest rate cuts in key markets such as Europe, the UK and the US, the global economic environment remains restrictive. Heightened uncertainty, a strong US dollar, and lingering inflation pressures have dampened international demand, impacting South Africa’s vehicle exports.
WesBank’s Head of Marketing and Communication, Lebo Gaoaketse,says: "Lower inflation, stabilised energy supply and currency performance are positive signs. But these factors will take time to translate into sustained market recovery."
The ABSA Purchasing Manufacturers’ Index also signalled steady business confidence, with manufacturers expressing optimism about improved conditions in six months. Structural reforms in transport and energy sectors, along with a more favourable credit outlook for South Africa, are expected to bolster the automotive industry.
As the year draws to a close, December sales are anticipated to be softer, with many consumers delaying purchases into the new year. However, strong performances in October and November have set the stage for potential market stability and growth in 2025.
Colin Windell for Colin-on-Cars in association with
proudly ALL THINGS MOTORING
