
Reflecting on the past two months, it is crucial to acknowledge the significant political milestone South Africa has achieved. The recent elections marked the end of the ANC’s 30-year majority rule, transitioning peacefully to a Government of National Unity (GNU) and a power-sharing model. This historic occasion is a testament to the strength of our democracy and a beacon of hope for stability in our country.
At this juncture, I want to take a moment to acknowledge and commend the exceptional efforts of everyone in our dealership community. We face numerous hurdles, from stagnant economic growth and high inflation to increased regulatory demands. South Africa’s economic landscape is indeed complex, with projections indicating economic growth will remain under 1% in 2024. Despite the 100 plus days of no loadshedding, we still face persistent electricity issues on an old network, rising debt servicing costs, and strained financial resources all squeeze household incomes. Despite these challenges, the resilience and adaptability demonstrated by our dealership professionals—from sales and service teams to administrative staff and management—are truly inspiring.
Although times are tough, there are positive developments that could boost the economy. Independent Power Producers have significantly increased power production and an additional 800MW has been added to the grid from the Kusile power station, and up to two potential interest rate cuts later this year could provide much-needed relief to consumers. . The Rand has shown strong signs of recovery against the dollar compared to over R19 when the election results were announced. This recovery bodes well for inflation, which remains sticky and has needed good news in the market.
The grey-listing of South Africa by the Financial Action Task Force (FATF) has introduced significant amendments to the Financial Intelligence Centre (FIC) Act, impacting auto dealers but also strengthening the legal framework that will assist in maintaining customer trust and satisfaction.
As dealers, we are the face of the industry and have a unique understanding of the financial pressures consumers are under. While we continue to battle long-term issues like crime, corruption, and utility supply constraints, all signs point towards a brighter second half of the year for consumers and dealers alike.
In other news, we are proud to announce the results of the 2024 Dealer Satisfaction Index (DSI) survey. Now in its 28th year, the DSI survey continues to be a crucial benchmark for measuring dealer satisfaction across various automotive brands in South Africa. This year’s survey saw participation from 35 independently researched brands and garnered a total of 1,481 responses. The 2024 ceremony was especially significant as it marked WesBank’s 20th year of partnering with NADA as the sponsor of the awards. The insights provided by the DSI project are invaluable to the automotive industry, and we extend our sincere appreciation to all who participated.
We have a clear “wish list” for the new Minister of Transport. As representatives of the retail auto sector, which accounts for 2% of the total 4.9% GDP contribution from the auto industry and employs more people than auto manufacturing, our primary wish is to be actively involved in the development of policies and laws that impact our sector. By establishing closer ties with government departments, we aim to assist with research, implementation, and consumer education on important issues like Road Safety and vehicle history transparency.
We also advocate for updating legislation to clearly define the Code status of vehicles and mandate the use of these codes on the National Traffic Information System (NaTIS). This simple update would enhance transparency and trust in the market, benefiting both consumers and the industry as a whole. We envision a collective auto sector where the government recognises the significant role of the retail sector within the industry.
We need clear policies and laws that consider the specific structure of dealerships. Employment Equity (EE) targets should not lump dealerships together with general shopping-centre retailers or manufacturers. Our industry requires the attraction, upskilling, and retention of talent, especially for the thousands of technical jobs available. We could be a strong partner to the government in achieving its job creation and economic growth targets. Additionally, we need the government to closely examine the economic impact of laws like the Administrative Adjudication of Road Traffic Offences Act (AARTO) and other regulations to ensure they are beneficial to the economy.
As we move forward, it is crucial to recognise the indispensable role every member of our dealership community plays in today’s challenging economic environment. Your expertise in navigating market constraints, leveraging emerging opportunities, and adhering to evolving legislative requirements positions us as critical allies for customers seeking to achieve their financial goals.
Together, we can navigate these challenging times and work towards a prosperous future for the automotive industry and our country. Thank you for your continued support and dedication.
Best regards,
Brandon Cohen
Chairperson
NADA

NADA 2024 Dealer Satisfaction Index results celebrate excellence
Now in its 28th year (with a pause in 2020 due to the Covid-19 pandemic), the NADA DSI survey continues to be a crucial benchmark for measuring dealer satisfaction across various automotive brands in South Africa. Lightstone, the independent research company conducting the survey since its inception in 1996, has noted a significant increase in how manufacturers and importers utilise the insights from the DSI results.
This year’s ceremony was especially significant as it marked WesBank’s 20th year of partnering with NADA as the sponsor of the awards. Speaking at the event, Ghana Msibi, CEO of WesBank, highlighted the importance of collaboration and resilience in the industry
South Africa – Automotive Retail Financial Performance Trends
May 2022 to March 2024
Geo-political events continue to have an impact on certain markets. However global inflation is holding firm and showing an improvement in many markets. Global economic factors impact South Africa and they rise and fall in unison. Employment in South Africa is rising but reports show that South Africa has recently achieved its highest employment. Stability in electricity supply has been steady with consumers investing in solar. Collectively the impact of the Automotive sector has been lower overall profitability.


From youth buying habits to market dips
In the latest edition of Lightstone Auto’s newsletter, Lightstone explores why young South Africans buyers are big fans of Crossover SUVs (and buying fewer houses) and how new Light Vehicle inflation is tracking against CPI.
There’s also a report on how vehicle prices are stabilising according to Signio data PLUS check out Lightstone Auto’s Repair History feature and stand a chance to win unlimited valuations. Enjoy your journey through these must-read articles
South Africa’s Auto Sector Arrives at a Crossroads
The South African automotive sector continues to grapple with significant macroeconomic challenges. Persistently high interest rates and negative GDP growth have eroded both consumer and business confidence, leading many to defer long-term financial commitments, including vehicle purchases. Announcing TransUnion’s Q1 2024 Vehicle Price Index (VPI), TransUnion Africa CEO Lee Naik says that this cautious sentiment is expected to persist


NADA in the media
Engineering News: Lexus, Mini, Toyota, Suzuki and Hino take platinum in Dealer Satisfaction Index (engineeringnews.co.za)
Daily Maverick: Financing costs and prices slam brakes on SA’s new car sector (dailymaverick.co.za)
Business Live: SA auto industry has a wish list for the new transport minister (businesslive.co.za
Mining Weekly: Sales drop 14% in June as new vehicles become increasingly unaffordable (miningweekly.com)
Automotive Business Review: NADA 2024 Dealer Satisfaction Index results celebrate excellence in automotive sector (abrbuzz.co.za)
Soweto TV: 2 Jul 2024 @ 19h30 – National Automobile Dealers Association (novusgroup.co.za)
Business Day TV: BUSINESSDAY TV – BUSINESS LUNCH – 12 JUL 2024 @ 12H30 – NATIONAL AUTOMOBILE DEALERS ASSOCIATION
Introducing the RMI MISA SAF Booklet
We are excited to announce the launch of the RMI MISA SAF Booklet, your comprehensive guide to the Motor Industry Sick, Accident and Maternity Pay Fund (SAF). This valuable resource was introduced at the recent IR seminar, which saw participation from 186 members.
For those who couldn’t attend the seminar, the booklet is now available online. We encourage all members to review this booklet to stay informed about the SAF and its benefits.
The booklet is also available on the RMI website for your convenience. You can access the flipbook version here: Read here.
