SA’s new-car market continued to be hindered by stock shortages in October, with 41,035 sales compared to 43,130 in September.

The global semiconductor shortage, combined with the local three-week strike in the steel and engineering sector and acute load-shedding, hurt the new-car market and vehicle exports.

Despite this, October’s sales were an encouraging 6.1% up over the same month last year, according to figures supplied by the Naamsa Automotive Business Council.

“The new vehicle market appears to be recovering strongly, with demand outstripping current supply constraints,” says Lebogang Gaoaketse, head of marketing and communication at WesBank.

“The second half of the year has performed strongly since the midyear lockdown restrictions, with the market trading above 40,000 units a month for the past three months.”

Last month’s 23,685 vehicle export sales were 30% down on October 2020, but year-to-date exports are still 12% ahead of the same period last year which was more heavily affected by Covid-19 lockdowns.

WesBank also notes a slow consumer shift back to new cars after a high demand for pre-owned vehicles over the past two years.

“Compared to a year ago, WesBank’s new applications rose 1.8% during October, while applications for pre-owned deals declined 5.9%. In addition, the bank’s used-to-new ratio has shifted over the 12-month period from 2.25 used vehicles financed for every new vehicle a year ago, to 2.08,” said Gaoaketse.

He said the issue of supply is a global factor that skews the overall picture.

“Until global manufacturing stabilises off the back of the pandemic and resolves its microchip shortages, consumer and business purchase decisions will be swayed by availability and necessity,” says Gaoaketse. “The good news is that South African car dealers are in a much more sustainable position than they were a year ago.”

New passenger car sales were up 3.1% last month, displaying consistency throughout the year, while the light commercial vehicle (LCV) market was far more volatile and jumped 15.9% last month after falling 10.9% in September.

Affordability continues to be a major consideration for motorists, says Gaoaketse, with major fuel price hikes and the prospect of interest rates potentially increasing.

Toyota retained its market leadership in October with 9,928 sales, followed by Volkswagen (5,975), Nissan (3,059), Hyundai (2,804), Suzuki (2,593), Renault (2,480), Kia (2,343), Haval (2,330), Ford (2,148) and Isuzu (1,934) rounding out the top 10.

SA’s top-selling new vehicles — October 2021

1. Toyota Hilux — 2,470
2. VW Polo — 1,693
3. VW Polo Vivo — 1,571
4. Toyota Hi-Ace — 1,556
5. Isuzu D-Max — 1,548
6. Toyota Starlet — 1,452
7. Ford Ranger — 1,363
8. Toyota Urban Cruiser — 1,270
9. Haval Jolion — 1,020
10. Kia Picanto — 982
11. Renault Kwid — 814
12. Renault Kiger — 811
13. Suzuki Swift — 803
14. Toyota Corolla Quest — 802
15. Nissan Almera — 735
16. VW T-Cross — 674
17. VW Polo sedan — 664
18. Toyota Fortuner — 660
19. Nissan Navarra — 650
20. Nissan Magnite — 625
21. GWM Steed — 618
22. Renault Triber — 604
23. Hyundai Grand i10 — 586
24. Mahindra Scorpio Pik-Up — 561
25. Nissan NP200 — 520
26. Suzuki S-Presso — 502
27. GWM P-Series — 501
28. Suzuki Vitara Brezza — 487
29. Hyundai Atos — 466
30. Hyundai Creta — 463