SOUTH AFRICA, Johannesburg, 01 October 2024 – “Vehicle sales in South Africa continued their downward trend in September, with total sales of 44,081 units, slightly down from the same period last year. However, there was a modest increase in passenger car sales, offering hope that the market may be slowly turning,” commented Brandon Cohen, National Chairperson of the National Automobile Dealers Association (NADA), after studying last month’s sales data.
“Passenger car sales are a key indicator of consumer sentiment, and the positive growth in this segment for the second consecutive month is encouraging. While the Reserve Bank’s first interest rate cut in four years will take time to fully impact the market, we are already seeing other positive factors, including a stronger exchange rate, lower inflation, a positive 100-day performance by the Government of National Unity, increased foreign investment, 190 days without load shedding, and lower fuel prices. These are all promising signs,” he added.
Retail dealer networks accounted for 79% of overall sales, with rental, government, and corporate fleets contributing 15%, 3%, and 2%, respectively.
“Despite these green shoots, the economic environment remains challenging, with rising electricity prices expected to put further pressure on disposable income. However, the industry remains cautiously optimistic about potential improvements in the fourth quarter, driven by the introduction of new models, additional brands in the lower price segments, and aggressive dealer incentives,” Cohen noted.
On the commercial vehicle front, the market continues to face pressure, with light commercial vehicle sales down 17.1% in September. The medium truck segment remained stable, while heavy trucks and buses experienced a significant 18.1% decline. However, compared to August, unit sales saw slight increases across all segments except for extra-heavy vehicles.
“We are not out of the woods yet, but the data is showing positive signs in the domestic market, and sentiment continues to improve. This momentum will hopefully translate into stronger sales in the medium to long term,” Cohen concluded.
NADA is a proud association of the Retail Motor Industry Organisation (RMI).
