SA's auto industry shifts gears: October sees highest passenger car growth in 5 years

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Export sales decreased by 17,324 units, or 42,6%, to 23,342 units in October 2024 compared to the 40,666 vehicles exported in October 2023.

Overall, out of the total reported industry sales of 47,924 vehicles, an estimated 38,520 units, or 80,4%, represented dealer sales, an estimated 14,8% represented sales to the vehicle rental industry, 2,6% to industry corporate fleets, and 2,2% to government.

The October 2024 new passenger car market at 34,228 units had registered an increase of 4,331 cars, or a gain of 14,5%, compared to the 29,897 new cars sold in October 2023. Car rental sales accounted for a sound 19,8% of new passenger vehicles sales during the month.

Domestic sales of new light commercial vehicles, bakkies and mini-buses at 10,791 units during October 2024 had recorded a decrease of 1,576 units, or a loss of 12,7%, from the 12,367 light commercial vehicles sold during October 2023.

Sales for medium and heavy truck segments of the industry reflected a weak performance in October 2024 and at 718 units and 2,187 units, respectively, recorded a decrease of 81 units, or 10,1% from the 799 units sold in October 2023 in the case of medium commercial vehicles, and, in the case of heavy trucks and buses a decrease of 168 vehicles, or 7,1%, compared to the 2,355 units sold in the corresponding month last year.

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The October 2024 exports sales at 23,342 units reflected a decrease of 17,324 vehicles, or a loss of 42,6%, compared to the high-based 40,666 vehicles exported in October 2023. For the first 10 months of the year, vehicle exports were now 23,1% below the corresponding period 2023.

Mikel Mabasa, naamsa CEO said that “the stronger performance in the new vehicle market in October 2024 and in particular the volume passenger car segment reflecting its highest monthly growth over the past five years, bodes well for signs of the new vehicle market slowly turning.

“Although strongly supported by seasonal sales to the vehicle rental industry, passenger cars sales represent a key indicator of consumer sentiment. Positive indicators of further potential growth include an easing in annual consumer inflation for a fourth consecutive month to 3,8% in September, the lowest level since March 2021, when the rate was 3,2%.

“In addition, petrol prices were at the lowest point in nearly three years, creating some breathing space for households.”