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In this issue of The Dealers’ Voice, we are proud to celebrate the remarkable career of our esteemed Director, Gary McCraw. With nearly 40 years of dedicated service to the Retail Motor Industry Organisation (RMI), Gary has made an indelible impact on our sector. Recently honoured with a prestigious Lifetime Achievement Award by the Automotive Remanufacturers’ Association (ARA) and the South African Vehicle and Bodybuilders’ Association (SAVABA), Gary’s commitment to excellence and passion for our industry are truly unparalleled.
As Gary prepares for his well-deserved retirement, we are excited to continue working with him over the next 10 months as NADA Director. His renewed energy and enthusiasm will undoubtedly guide us through a smooth transition and continued growth. We invite you to read the full tribute to Gary McCraw and celebrate his incredible contributions to the retail automotive industry in the story below.
Looking ahead, the recent decline in South Africa’s annual consumer price inflation to 4.6% – the lowest level in three years – signals a positive economic shift. This, coupled with the recent decrease in fuel prices, offers encouraging news for both consumers and businesses. We are optimistic that a potential interest rate cut by the South African Reserve Bank this month could make vehicle financing more affordable, reducing monthly costs for consumers and potentially boosting new and used vehicle sales.
For businesses, particularly in the automotive sector, lower borrowing costs and improved consumer confidence could drive demand, fostering growth and sustainability. At NADA, we remain committed to advocating for favourable conditions that support both consumers and businesses, ensuring our industry continues to thrive as a key driver of economic growth in South Africa.
In this edition, we provide a comprehensive overview of NADA’s recent media coverage, highlighting our ongoing initiatives and impact within the industry. You’ll also find an analysis of South Africa’s automotive retail financial performance trends from July 2023 to June 2024, presented by MSXi. We delve into emerging trends in the local automotive market, featuring insights from Paul Marshall, Managing Director of Lightstone Auto.
We also offer an exclusive look into the Sewells/MSXi Dealer of the Year selection process and provide key updates on the Employment Equity Act, including crucial information for businesses regarding the 2024 reporting period.
We hope you enjoy reading the complete edition of the NADA Newsletter, where you can explore these stories and much more.
Best regards,
Brandon Cohen
Chairperson
NADA
Honouring a legend: Gary McCraw’s exceptional career spanning four decades
We are proud to recognise Gary McCraw, our esteemed Director, for his remarkable contributions to the automotive industry over an extraordinary four decades with the RMI. Recently presented with a lifetime achievement award by the Automotive Remanufacturers’ Association (ARA) and the South African Vehicle and Bodybuilders’ Association (SAVABA), Gary’s commitment to excellence and passion for our industry is truly unparalleled.
Having been awarded NADA’s Lifetime Achievement Award in 2019, Gary’s leadership and dedication have been pivotal in elevating the profile of our association and strengthening relationships across the sector. As Gary prepares to retire, we celebrate his legacy and honour his profound impact on the automotive retail industry. Click on the Read more link for the full tribute to Gary McCraw and his inspiring career.
South Africa – Automotive Retail Financial Performance Trends July 2023 to June 2024
Managing inflation remains a global theme with a steady improvement reported in countries around the world. Regional fragmentation is an emerging trend spurred by geopolitical developments and the alignment of countries and their collaboration along new axis. Global economic activity in the year ahead will be shaped by the ongoing regional conflicts in the Middle East and Ukraine. A record number of the main trading partners for South Africa will be conducting elections and the spinoff for South Africa is an unknown.
Economic strains and lifestyle changes drive new trends in SA’s auto market
Despite macroeconomic pressures, the auto industry is showing promising signs, with new vehicle sales anticipated at around 526 500 units. The positive sentiment from the Government of National Unity and a stable Rand are encouraging factors. And Hybrid and Electric Passenger vehicle sales are on the rise, showing a strong shift towards greener transportation. Read more on Lightstone Auto’s Managing Director, Paul Marshall’s insights on the auto industry.
An inside look at the Sewells/MSXi dealer of the year selection process
Each year, the Sewells/MSXI Dealer of the Year Awards honour dealers who excel in generating a return on operational assets (% ROA). The awards are divided into five categories: Listed Group, Unlisted Group, Independent, Luxury, and Commercial Dealers—ensuring fair representation of different financial structures. From these categories, the overall top-performing dealer in South Africa is chosen. The Most Improved Performance Group Member award recognizes the dealer with the greatest year-over-year improvement in % ROA, considering both performance and the challenges overcome to achieve it.
To explore the full selection process, click on the Read more button below for details!
NADA media mentions
Dealer Floor: NADA encouraged by positive signs | Dealerfloor
iol: SA’s motor industry could be in for a welcome boost, says dealer association (iol.co.za)
BusinessTech: ‘Door wide open’ for interest rate cuts in South Africa next month – BusinessTech
Turning Points Magazine: NADA welcomes potential interest rate cut amid lower inflation and fuel prices | turningpoints magazine
TopAuto: The hidden economy employing 1 million people in South Africa’s auto industry – TopAuto
AutoForum: https://autoforum.co.za/View-News-Article.aspx?News=sas-vibrant-dealer-economy-24-02-18
Engineering News: 2 Jul 2024 @ 19h30 – National Automobile Dealers Association (novusgroup.co.za)
Gadget: Check these factors when seeking vehicle finance – Gadget
Business Day: https://www.businesslive.co.za/bd/national/2024-08-12-component-makers-hit-by-vehicle-production-cutbacks/
aBr: July sees positive turn in monthly retail new vehicle sales (abrbuzz.co.za)
Cars.co.za: SA new-vehicle sales in July 2024: new highs for 3 brands (cars.co.za)
Existing EE Act provisions for 2024 reporting period still applicable pending the signing of proclamation date of amendment
The Department of Employment and Labour, speaking during one of the series of national EE workshops, in partnership with Commission for Conciliation Mediation and Arbitration (CCMA) has reported that the existing Employment Equity Act (EEA) provisions for the 2024 EE Reporting period is still applicable pending the signing of EE amendments implementation date.
“A proclamation notice for commencement date is still pending,” Department of Employment and Labour Deputy Director: EE Masilo Lefika said.
The EE Amendment Bill was signed into law on 06 April 2023 by President Cyril Ramaphosa.
The Amendments to the EE Act of 1998 and its Regulations are primarily aimed at empowering the Minister of Employment and Labour to regulate the setting of sector specific EE numerical targets and the promulgation of Section 53 that deals with the issuing of an EE Compliance Certificate, as a prerequisite for accessing of State contracts.
The 2024 Employment Equity workshops are held under the theme: “Bridging the Equity Gap Through Diversity & Inclusion”.
This year’s EE workshops focus on:
– The EE status of the labour market as per 24th CEE Annual Report.
– An update on the EE amendments, in particular the proposed draft regulations on proposed sector EE targets.
– An update on the 2024 EE reporting season.
– Key insights from the CCMA on topical cases related to unfair discrimination in terms of harassment, disability and discrimination based on arbitrary grounds.
The EE workshops are targeted at Employers or Heads of organisations, Academics, Assigned Senior Managers, Consultative forum members, Human Resource Practitioners, Trade Unions, employees and interested stakeholders.
More information on the EE workshops, including updates on the venues to be used, will be available on the Department’s and the CCMA’s social media platform as well as the Department’s website: www.labour.gov.za
Any Member that wishes to make an inquiry in this subject regard, can contact the RMI’s Transformation Director, Ms. Nonhlanhla Tshabalala on Noni.Tshabalala@rmi.org.za
