2024 Volkswagen Polo Vivo The Volkswagen Polo Vivo was SA's top-selling vehicle overall in November. Picture: Supplied
Image: Volkswagen
It’s been a mediocre year for South Africa’s new vehicle market, but with interest rates finally subsiding, the industry has entered a growth phase once again.
According to Naamsa, November saw a year-on-year new vehicle sales gain for the second month in a row, with the market improving by 8.1% versus the same month in 2023.
Passenger vehicle sales, amounting to 35,101 units in November, continue to lead the growth, showing a gain of 20% year-on-year. This was largely fuelled by sales to the car rental industry, which accounted for nearly one in five cars and SUVs sold in South Africa last month.
However, the bakkie and light commercial vehicle market continues to decline, with November’s total of 10,827 units being 16.3% lower than November 2023’s figure. This is partly due to the demise of the Nissan NP200, which brought the end to South Africa’s half-tonne bakkie market.
Medium and heavy commercial vehicle sales decreased by 9.2% and 0.5% respectively, according to Naamsa.
Vehicle export sales also continued their downward trend, falling by 28.6% year-on-year.
81.2% of new vehicle sales took place through the dealer channels in November, Naamsa said, with the rental industry (14.6%), government (2.4%) and corporate fleets (1.8%) accounting for the remainder.
In line with the passenger car boom, Toyota's Hilux bakkie was knocked off its usual top spot by Volkswagen's recently updated Polo Vivo, while the Toyota Corolla Cross enjoyed a better-than-usual month with 2,655 sales.
In terms of manufacturer sales, Toyota sold almost double the volume of its nearest rival Volkswagen SA, which was closely trailed by Suzuki Auto.
“Robust new passenger car sales once again stood out as a shining beacon in a new vehicle market reflecting a mixed performance during November 2024,” Naamsa said.
“Along with sound seasonal sales to the vehicle rental industry and five consecutive months of lower consumer inflation, a second interest rate cut of 25 basis points by the South African Reserve Bank during the month sparked positive sentiment.”
New vehicle sales are currently tracking 3.5% below the corresponding period in 2023, the industry association said, and the industry is unlikely to return to pre-pandemic levels this year.
However, further interest rate cuts in the new year could certainly support vehicle affordability across all segments, Naamsa concluded.
IOL
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