PRETORIA: Monday, July 03, 2023: naamsa | The Automotive Business Council said that the upbeat
new vehicle market performance was encouraging given the multiplicity of negative considerations which
still outweighs positive ones during the month of June 2023. Aggregate domestic new vehicle sales in
June, at 46,810 units reflected an increase of 5,758 units, or 14,0%, from the 41,052 vehicles sold in June
2022. Export sales recorded a decline of 3,920 units, or 12,6%, to 27,296 units in June 2023 compared
to the 31,216 vehicles exported in June 2022.
Overall, out of the total reported industry sales of 46,810 vehicles, an estimated 39,086 units, or 83,5%,
represented dealer sales, an estimated 10,0% represented sales to the vehicle rental industry, 3,5% sales
to government, and 3,0% to industry corporate fleets.
The June 2023 new passenger car market at 29,795 units had registered an increase of 251 cars, or a
gain of 0,8%, compared to the 29,544 new cars sold in June 2022. The car rental industry supported the
new passenger car market during the month and accounted for a sound 13,4% of sales in June 2023.
Domestic sales of new light commercial vehicles, bakkies and mini-buses at 13,945 units during June
2023 had recorded a substantial increase of 5,070 units, or a gain of 57,1%, from the 8,875 light
commercial vehicles sold during June 2022.
Sales for medium and heavy truck segments of the industry reflected a positive performance during the
month and at 743 units and 2,327 units, respectively, showed an increase of 56 units, or 8,2% in the case
of medium commercial vehicles, and, in the case of heavy trucks and buses an increase of 381 vehicles,
or a gain of 19,6%, compared to the corresponding month last year.
The June 2023 exports sales number at 27,296 units reflected a decline of 3,920 vehicles, or 12,6%,
compared to the 31,216 vehicles exported in June 2022.
For the first half of the year the new vehicle market was now 12,284 units or 4,8% ahead of the
corresponding period 2022 while vehicle exports were 7,857 units or 4,7% ahead of the first half of 2022.
The knock-on effects of the devastating KZN floods impacting on vehicle production and exports during
May 2022 were visible in the June 2023/June 2022 monthly comparisons, especially in the case of the
light commercial vehicle segment.
The unexpected extent of the upswing in the new vehicle market during June 2023, for the second month
in a row, exceeded expectations, despite ongoing increases in the total cost of ownership. Challenges
confronting the economy and the automotive industry such as high interest rates, high inflation, and
currency depreciation continue to strain consumers’ budgets and affordability appears to be driving new
vehicle sales, underlined by the top selling models in the market. In addition to an easing in inflation by
more than expected as well as an improvement in significantly less daytime loadshedding during the
month, another welcome development was the renewed collaboration between business and government
to urgently tackle key current challenges relating to energy, infrastructure and transport logistics, as well
as combating crime. If successful, the collaboration efforts could assist to reduce policy uncertainty and
promote a more predictable economic environment which would enable much higher levels of
investment, growth and job creation and to break out of the current low economic growth trap.
Vehicle exports performed weaker in June 2023 compared to the corresponding month 2022 but the
export momentum remains upward on the back of further new model introductions by major exporters in
the domestic market. Growing concerns about global stagflation, the economic impact and disruption of
supply chains resulting from the protracted geopolitical conflict, and the pace of tighter monetary policy
in major markets potentially posing the risk of a potential global recession, remain.
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