Tough trading conditions for the motor industry last year culminated in December sales taking a dip.
Naamsa, the automotive business council, released its statistics for the final month of 2023 – with figures reflecting the fifth consecutive month of year-on-year decline. The aggregate figure for the industry was 40,329 units, versus 41,721 units in December 2022.
According to the organisation, the market was still 1.3% below the pre-pandemic level in 2022 and for most of 2023 had been on track to recover to the pre-pandemic level of 2019.
But growth was scuppered by a depressed economy, cost of living increases, power outages and year-end logistical constraints with vessel delays and container backlogs at ports. Naamsa also cited the Russia-Ukraine and Israel-Palestine conflicts as disruptors of supply chains globally.
The new vehicle sales figure for the year in total offers a small glimmer of hope, showing marginal improvement of 0.5% year-on-year in 2023 to 532,098 units; compared to the 529,556 units that were achieved in 2022. It is anticipated that a full recovery to the 536,612 units recorded in 2019 may take four years. Passenger car sales decreased by 4.4% to 347,695 vehicles; compared to 363,692 vehicles in 2022. Increased activity was seen in the light and heavy commercial vehicles categories.
Light commercial vehicle sales rose by 11.6% to 151,499 units from 135,712 units the previous year. Heavy commercial vehicle sales increased by a significant 12.8% to 24,646; units compared to the figure of 21,844 in 2022. Naamsa attributed the growth to transport of goods being forced onto roads, due to rail inefficiencies. Medium commercial vehicles declined, however, recording sales of 8,258 units compared to 8,308 the previous year.
Resoundingly positive, is that exports went up: 396,290 units were recorded in 2023, indicating an increase of 44,505 vehicles or a gain of 12.7% compared to the 351,785 vehicles exported in 2022. This exceeded the previous record of 387,092 units in 2019. Two out of every three vehicles manufactured in SA are exported. Naamsa reiterated that increased vehicle production is imperative to stimulating employment. The industry body said that although the global economy would remain weak in 2024, the possibility of a gradual decrease in inflation and rate cuts might support vehicle exports.
Look out for our comprehensive motor industry forecast for 2024 next week, featuring insights from the heads of the leading manufacturers in SA.
New vehicle sales top 10 in December 2023:
Toyota Hilux: 2,858
Volkswagen Polo Vivo: 2,448
Ford Ranger: 1,936
Toyota Corolla Cross: 1,932
Toyota Vitz: 1,358
Isuzu D-Max: 1,023
Toyota Hi-Ace: 1,014
Toyota Starlet: 1,013
Suzuki Swift: 967
Renault Triber: 901
Commercial vehicles saw growth, passenger cars dipped
New car sales tapered in December ’23
Image: Supplied
Tough trading conditions for the motor industry last year culminated in December sales taking a dip.
Naamsa, the automotive business council, released its statistics for the final month of 2023 – with figures reflecting the fifth consecutive month of year-on-year decline. The aggregate figure for the industry was 40,329 units, versus 41,721 units in December 2022.
According to the organisation, the market was still 1.3% below the pre-pandemic level in 2022 and for most of 2023 had been on track to recover to the pre-pandemic level of 2019.
But growth was scuppered by a depressed economy, cost of living increases, power outages and year-end logistical constraints with vessel delays and container backlogs at ports. Naamsa also cited the Russia-Ukraine and Israel-Palestine conflicts as disruptors of supply chains globally.
The new vehicle sales figure for the year in total offers a small glimmer of hope, showing marginal improvement of 0.5% year-on-year in 2023 to 532,098 units; compared to the 529,556 units that were achieved in 2022. It is anticipated that a full recovery to the 536,612 units recorded in 2019 may take four years. Passenger car sales decreased by 4.4% to 347,695 vehicles; compared to 363,692 vehicles in 2022. Increased activity was seen in the light and heavy commercial vehicles categories.
Light commercial vehicle sales rose by 11.6% to 151,499 units from 135,712 units the previous year. Heavy commercial vehicle sales increased by a significant 12.8% to 24,646; units compared to the figure of 21,844 in 2022. Naamsa attributed the growth to transport of goods being forced onto roads, due to rail inefficiencies. Medium commercial vehicles declined, however, recording sales of 8,258 units compared to 8,308 the previous year.
Resoundingly positive, is that exports went up: 396,290 units were recorded in 2023, indicating an increase of 44,505 vehicles or a gain of 12.7% compared to the 351,785 vehicles exported in 2022. This exceeded the previous record of 387,092 units in 2019. Two out of every three vehicles manufactured in SA are exported. Naamsa reiterated that increased vehicle production is imperative to stimulating employment. The industry body said that although the global economy would remain weak in 2024, the possibility of a gradual decrease in inflation and rate cuts might support vehicle exports.
Look out for our comprehensive motor industry forecast for 2024 next week, featuring insights from the heads of the leading manufacturers in SA.
New vehicle sales top 10 in December 2023:
Toyota Hilux: 2,858
Volkswagen Polo Vivo: 2,448
Ford Ranger: 1,936
Toyota Corolla Cross: 1,932
Toyota Vitz: 1,358
Isuzu D-Max: 1,023
Toyota Hi-Ace: 1,014
Toyota Starlet: 1,013
Suzuki Swift: 967
Renault Triber: 901
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