NADA Comment: New vehicle sales continue to astound in November

South Africa, 1 December 2022: “Relatively strong sales of new motor vehicles in South Africa in November has come as a pleasant surprise to the local motor industry and dealer networks,” commented Mark Dommisse, Chairperson of the National Automobile Dealers’ Association (NADA) after analysing the monthly sales figures for the month distributed by the National Association of Automobile Manufacturers of South Africa (naamsa I The Automotive Business Council).

“We were expecting a similar market to October, considering the negatives affecting the economy and growing political uncertainty in the country, but consumers have once again proved us wrong. November’s tally of 49 413 units showed an improvement of nearly 3 500 sales from just one month ago, and represented a significant 18.2% increase on the number of units sold in the same month last year. This is most heartening for all sectors of the industry,” added Dommisse.

“Our dealers enjoyed another good month in November, with 81%, or almost 40 000, of total sales moving through retail channels. Rental sales were also strong as hire companies bought 14.7% of total vehicles and 20% of passenger cars, as they prepare for what will hopefully be a bumper festive season.

“These sales are important to the second-hand vehicle market, as rental models will filter down to the used vehicle market in a year or two, helping to alleviate the relative shortage of quality, low mileage pre-owned models that have been in short supply due to the Covid pandemic and sell-offs by the rental companies.

“The consumer trend of buying less expensive and smaller cars, usually SUVs or crossovers continues and, fortunately, the stock position has improved to meet this demand. Toyota is still recovering from lost production due to the four-month stoppage at its plant in Durban caused by flooding in April and the local manufacturer is obviously catching up on deliveries that should have been made earlier in the year, which is affecting the market positively.

“There were also strong sales in the various commercial vehicle markets, all showing growth with medium, heavy, extra-heavy and bus sectors up 17.5%, 15.4%, 24.1 and 53.8% respectively compared to November 2021.This indicates improving business confidence, even in these tough economic times.

“Another positive sign for the motor industry as we head for year-end was another particularly good month for exports, which increased by 64.7% to 34 310 vehicles in November 2022, compared to the situation a year ago,” concluded the NADA Chairperson

NADA is a proud constituent association of the Retail Motor Industry Organisation (RMI).