The SA Vehicle Industry Thread

The genders and car buying: SA women big on SUVs, but guys still prefer hatchbacks

When it comes to the genders and their vehicle buying preferences, it seems the traditional stereotypes no longer apply.

Automotive information specialist Lightstone Auto did some comprehensive digging into South Africa’s new vehicle sales data of the past decade and found a significant shift had taken place in consumer preferences.

This comprehensive analysis shows that women are increasingly opting for SUVs and crossovers as well as double cab bakkies, while men still favour hatchbacks.

“Crossover and SUVs have become particularly popular among women, constituting a substantial 41% of total sales in 2023,” said Lightstone Head of Sales, Jaco van Staden. “Men, on the other hand, while they also started to show greater interest in crossover, SUVs and double cabs, hatches remain their preferred choice, accounting for approximately 29% to 30% of their market share.”

 
SUVs vs hatches vs bakkies: here’s what the different age groups are buying in SA

The past decade has seen a big shift in the vehicle buying habits of South Africans and our counterparts abroad.

In a nutshell: we’ve all become obsessed with pavement-hopping SUVs.

According to Naamsa stats, 2021 saw crossovers and SUVs overtake hatchbacks to become the most popular automotive body style in South Africa and currently they account for more than half of the passenger car market.

Lightstone Auto recently did a deep dive into the buying habits of South Africans in the past decade, including preferred vehicle types of both men and women, which you can read more about here.

The same report has also shed some light onto the different age groups and the types of vehicles they prefer.

While most of the generations have gravitated towards SUVs in the past nine years, those below the age of 30 still predominantly buy hatchbacks, although that share has dropped from 58% to 51%, while their SUV ownership has increased from 10% to 21%.

 
VW’s global CEO sounds warning to SA

The CEO of the Volkswagen brand says he is “very worried” about the future of the German automaker’s manufacturing operations in South Africa…

Thomas Schäfer, global CEO of the Volkswagen brand, has sounded a warning to South Africa, saying he is “very worried” about the future of vehicle manufacturing in the country.

Speaking to Reuters, Schäfer pointed to South Africa’s persistent load-shedding, sustained logistical issues (both on the railways and at the ports) and increasing labour costs as key disadvantages to building cars in the country.

VW SA currently manufactures the prolonged lifecycle Polo Vivo and the Polo hatchback at its Kariega factory in the Eastern Cape. The facility produces the Polo hatch for all right-hand-drive markets – while also supplementing production for left-hand-drive markets – and is the sole producer of the Polo GTI. However, many key export destinations are shifting towards electric vehicles (EVs), casting doubt on the global future of the Polo nameplate.

That said, back in November 2022, VW SA announced its intention to add a new model to its local production line, confirming the upcoming vehicle would ride on the same MQB-A0 platform as the Polo hatchback with a planned production start in 2026 or 2027. The company has also mentioned the possibility of a small bakkie being spun off the same platform.

 
VWSA ‘here to stay’, with more Polo exports for now, but 3rd product decision delayed

Volkswagen South Africa’s Managing Director Martina Biene says the local operation is here to stay.

This comes days after the company’s global CEO Thomas Schäfer said he was “very worried” about the viability of the South African manufacturing operation, given the increasing cost of mitigating load shedding disruptions as well as port delays and rising labour costs.

However during a year-end function on Monday that was attended by local media, VWSA boss Biene reiterated that although the issues raised by Schäfer are of huge concern, the company currently had no plans to leave South Africa.

In fact Biene said the local operation was planning to increase production of its Polo to a record volume of 163,000 units in 2024.

To ensure this is possible without disruption, the company was planning to spend around R130 million over the next two years on renting generators and fuelling them with diesel. In recent times the company has also resorted to air freighting some car parts due to the port delays.

 
FiestaST said:
VWSA ‘here to stay’, with more Polo exports for now, but 3rd product decision delayed

Volkswagen South Africa’s Managing Director Martina Biene says the local operation is here to stay.

This comes days after the company’s global CEO Thomas Schäfer said he was “very worried” about the viability of the South African manufacturing operation, given the increasing cost of mitigating load shedding disruptions as well as port delays and rising labour costs.

However during a year-end function on Monday that was attended by local media, VWSA boss Biene reiterated that although the issues raised by Schäfer are of huge concern, the company currently had no plans to leave South Africa.

In fact Biene said the local operation was planning to increase production of its Polo to a record volume of 163,000 units in 2024.

To ensure this is possible without disruption, the company was planning to spend around R130 million over the next two years on renting generators and fuelling them with diesel. In recent times the company has also resorted to air freighting some car parts due to the port delays.

Click to expand...
HQ won't like that diesel either because all global CEO's are under pressure to go nett zero for carbon emissions or whatever nonsense they call it.

It's very simple. If things don't improve, Germany will just not award VWSA the next generation Polo build and the good stuff will be unbolted and shipped to a new factory overseas and Uitenhage will just keep the empty buildings.

Same potential could happen locally at the Merc plant after W206 reaches end of production.

Both scenarios would destroy the city's.
 
We don’t want to leave, says VW SA boss

The head of Volkswagen Group South Africa says the company doesn’t want to leave Mzansi “at all”, but adds that government needs to fix some issues “rather sooner than later”…

Martina Biene, chairperson and managing director of Volkswagen Group South Africa, says the German automotive giant doesn’t want to leave the country “at all”, but adds that the government needs to implement various fixes “rather sooner than later”.

Biene made the comments during an interview with eNCA, responding to a Reuters report quoting Thomas Schäfer, global CEO of the Volkswagen brand, as saying he is “very worried” about the future of vehicle manufacturing in South Africa.

Schäfer pointed to South Africa’s persistent load-shedding problems, sustained logistical issues (both on the railways and at the ports) and increasing labour costs as key disadvantages to building cars in the country.

“Eventually you have to say, ‘why are we building cars in a less-competitive factory somewhere far away from the real market where the consumption is?’. I’m very worried about it… We’re not in the business of charity,” Schäfer said, according to the Reuters report.

Biene told the news station Schäfer’s comments were “clearly a warning”.

 
Cabinet approves South African White Paper on New Energy Vehicles

South Africa’s long-awaited White Paper on New Energy Vehicles has finally been given the go-ahead.

During a Post Cabinet media briefing held on Thursday, Minister in The Presidency Khumbudzo Ntshavheni said Cabinet had approved the draft White Paper on electric vehicles, which aims to ensure that the country forms part of the global shift from internal combustion engines to new technology vehicles.

“The policy supports investments in the development and expansion of new and existing manufacturing plants to support the production of electric vehicles in the country,” the Minister said.

“South Africa’s automobile industry plays a critical role in economic growth and supports thousands of jobs and the country is also endowed with mineral resources that positions it to become a key and strategic player in the full electric vehicle value chains.”

South Africa’s automotive industry currently contributes around 7% of the country’s GDP.

 
SA’s best-selling brands and vehicles in November 2023

South Africa’s new-vehicle sales fell 9.8% year on year in November 2023, with declines in all major segments. Here’s your full overview, including Mzansi’s most popular brands, best-selling vehicles and more…

In November 2023, South Africa’s new-vehicle industry registered a year-on-year drop of 9.8% to finish on 45 075 units. For the record, that made it 4 consecutive months of year-on-year declines, though this was easily the most significant fall of the bunch (and furthermore represented a 0.8% drop compared with October 2023).

According to the industry representative body – which initially distributed slightly different figures before sending out a correction – the subdued performance of the local market could be at least partly attributed to the return of Stage 6 load-shedding as well as sustained supply-chain disruptions at Transnet.

Out of the total reported industry sales of 45 075 vehicles, Naamsa estimated that 38 224 units (or 84.8%) represented sales via the dealer channel, while 9.5% were sales to the vehicle-rental industry, 3.1% to government and 2.6% to industry corporate fleets.

In November 2023, Mzansi’s new passenger-vehicle market registered a “significant” year-on-year decline of 12.1% to 29 384 units, with car-rental sales accounting for 12.5% (or 3 672 units) of that total. The light-commercial vehicle segment didn’t escape the drop either, finishing the month on 12 941 units (a 3.9% fall compared with the same month in 2022). In fact, only the export market showed growth, increasing by 25.5% to 41 660 units.

10 best-selling vehicles in South Africa in November 2023

1. Toyota Hilux – 3 073 units

2. Ford Ranger – 2 234 units

3. Volkswagen Polo Vivo – 1 913 units

4. Toyota Corolla Cross – 1 766 units

5. Isuzu D-Max – 1 662 units

6. Toyota Hi-Ace – 1 549 units

7. Toyota Starlet – 1 176 units

8. Nissan NP200 – 1 152 units

9. Suzuki Swift – 1 117 units

10. Nissan Magnite – 997 units

 

SA’s Electric Vehicle White Paper released, and they don’t want you to buy one just yet​



Incentivising the purchase of electric vehicles in South Africa is something that will only take place further down the line as “phase two” of the EV Roadmap kicks in. The minister could not give an exact timeline for this second phase to kick in, but during the Q&A session he said it could theoretically take as long as seven or eight years.

The bottom line is that government doesn’t want South Africans to buy electric vehicles in large numbers just yet, not only because of the current grid constraints that are causing load shedding, but also because the grid is predominantly coal-powered at present, which would erode the environmental benefits of EV ownership.

Of course, the loss of lucrative fuel levies is another factor that the government seems to be skirting around at present.
 
Which family SUVs are winning the sales race in SA?

Just how much have the Chinese disrupted the family SUV sales race in South Africa? Let’s take a closer look at year-to-date registrations of medium-sized crossovers or SUVs…

Despite many South African consumers having likely been forced to “buy down” into more affordable new-vehicle segments this year, there’s still plenty of sales action in the family SUV category. So, which models are leading the charge? And just how much have Chinese crossovers disrupted the race?

Before we dive into the sales figures, let’s take a step back and explain exactly what we mean by “family SUV”, for you to better understand which models have been included here. Slotting neatly into the Family Car category of the 7th iteration of the Cars.co.za Consumer Awards (CarsAwards), this type of vehicle is also classed as a medium crossover or SUV.

Larger than the Compact Family Car (think Haval Jolion, Toyota Corolla Cross and Renault Duster), the family SUV is a practical all-rounder. For a vehicle to qualify for inclusion in this feature, it must have at least one foot in the R600 000-to-R800 000 price bracket, which sees premium contenders such as the Rosslyn-built BMW X3 out of the running.

Based on year-to-date sales figures (up to the end of November 2023), it’s interesting to note every single vehicle in the top 10 bar one is manufactured by a brand hailing from Asia – either China, Japan or South Korea. Right, let’s take a closer look…

South Africa’s best-selling family SUVs in 2023 so far

1. Haval H6 – 5 032 units

2. Volkswagen Tiguan – 3 165 units

3. Chery Tiggo 8 Pro – 2 195 units

4. Hyundai Tucson – 1 767 units

5. Mazda CX-5 – 1 283 units

6. Toyota RAV4 – 1 021 units

7. Kia Sportage – 863 units

8. Nissan X-Trail – 652 units

9. Subaru Forester – 306 units

10. Honda CR-V – 116 units

 
Infrastructure crisis takes toll on South African vehicle sales: November 2023 round-up

South African vehicle sales declined for the fourth month in a row in November as the shipping crisis and escalated load shedding took their toll on the local market.

According to Automotive Business Council Naamsa, 49,986 new vehicles were sold in South Africa last month, a worrying 9.8% decline over the same month in 2022.

The passenger car market, at 29,384 units, saw a 12.1% year-on-year decline while the bakkies and light commercial vehicles fell 3.9% to 12,941. The medium and heavy commercial vehicle sectors posted respective declines of 13.5% and 10.7%.

Naamsa said the current logistical challenges at South Africa’s ports and across the rail network in general would soon have a devastating domino effect on the entire value chain of the automotive industry.

“While supply chains are gradually stabilising globally and semi-conductor shortages are anticipated to ease, our erratic logistical challenges will become the single biggest risk for the sector should we not urgently address many of the leadership and systemic structural challenges experienced by Transnet,” Naamsa said.

50 Best-selling vehicles in South Africa: November 2023

1. Toyota Hilux - 3,073
2. Ford Ranger - 2,234
3. Volkswagen Polo Vivo - 1,913
4. Toyota Corolla Cross - 1,766
5. Isuzu D-Max - 1,662
6. Toyota Hi-Ace - 1,501
7. Toyota Starlet - 1,176
8. Nissan NP200 - 1,152
9. Suzuki Swift - 1,117
10. Nissan Magnite - 997
11. Chery Tiggo 4 Pro - 986
12. Hyundai Grand i10 - 965
13. Volkswagen Polo - 930
14. Toyota Vitz - 855
15. Toyota Fortuner - 689
16. Kia Sonet - 675
17. Haval H6 - 654
18. Mahindra Scorpio Pik-Up - 606
19. Renault Kwid - 589
20. Toyota Corolla Quest - 582
21. Renault Kiger - 574
22. Hyundai i20 - 565
23. Toyota Urban Cruiser - 559
24. Suzuki Fronx - 547
25. Volkswagen T-Cross - 538
26. Renault Triber - 522
27. Suzuki Ertiga - 520
28. Haval Jolion - 508
29. Suzuki S-Presso - 446
30. Volkswagen Polo Sedan - 434
31. Suzuki Baleno - 414
32. Nissan Navara - 402
33. Volkswagen Amarok - 367
34. Suzuki Jimny - 350
35. Ford Everest - 346
36. Toyota Rumion - 330
37. Kia Picanto - 324
38. Chery Tiggo 7 Pro - 309
39. Hyundai Tucson - 295
40. GWM P-Series - 284
41. Toyota Land Cruiser PU - 260
42. Suzuki Grand Vitara - 238
43. Toyota Land Cruiser 300 - 222
44. Hyundai H100 Bakkie - 215
45. Suzuki Dzire - 213
46. Suzuki Celerio - 204
47. Kia Seltos - 200
48. Volkswagen Tiguan - 178
49. Nissan Qashqai - 163
50. Honda Amaze - 149

Best-selling vehicle brands in South Africa: November 2023

1. Toyota - 11,556
2. Volkswagen - 5,056
3. Suzuki Auto - 4,368
4. Ford - 2,910
5. Nissan - 2,779
6. Hyundai - 2,532
7. Renault - 1,802
8. Kia - 1,546
9. Chery - 1,501
10. BMW/Mini - 1,213

 
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