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The SA Vehicle Industry Thread
- Thread starter FiestaST
- Start date
FiestaST
Honorary Master
It’s official: MG Motor is returning to South Africa
MG Motor is officially returning to South Africa some 8 years after it last left the local market. Here’s what we know about the Chinese-backed firm’s imminent relaunch…
Back in July, Cars.co.za reported that MG Motor was poised to return to South Africa before the end of 2024. Now we have official confirmation that the Chinese-backed British firm will indeed re-open its doors locally in the final quarter of the year, just in time to celebrate the brand’s centenary.
MG Motor South Africa says the “exact dates [of its official relaunch] have still to be confirmed” (as it is still “in the process of finalising” its plan) but adds that “it will be to[wards] the end of the year”.
Though the brand’s local website is not yet up and running, it created an “MG Motor South Africa” profile on Facebook as recently as 3 September 2024. In addition, the Hatfield Motor Group – a well-known multi-franchise dealer network – recently posted details on its website about 2 soon-to-open MG dealerships.
While this page on the Hatfield Motor Group’s site has curiously since been removed, we tracked down a cached version, which included the image below as well as the following text: “Prepare to rediscover the iconic MG car brand as it returns to South Africa with two new dealerships opening up in Rivonia and Midrand on 1 October 2024”.
For the record, the listed address of MG Motor South Africa’s headquarters is 93 Grayston Drive in Sandton. For now, however, it’s unclear whether the division will relaunch as a wholly owned subsidiary of SAIC Motor or whether a private company has been appointed to distribute the marque locally.
As a reminder, the MG brand – which was founded 100 years ago as “Morris Garages” in the United Kingdom – is owned by Chinese group SAIC Motor, a state-owned manufacturer also responsible for the LDV marque. Officially under the stewardship of Shanghai-based SAIC Motor since around 2007, MG began its previous re-entry to South Africa late in 2011, though again exited the local market in 2016.
MG Motor is officially returning to South Africa some 8 years after it last left the local market. Here’s what we know about the Chinese-backed firm’s imminent relaunch…
Back in July, Cars.co.za reported that MG Motor was poised to return to South Africa before the end of 2024. Now we have official confirmation that the Chinese-backed British firm will indeed re-open its doors locally in the final quarter of the year, just in time to celebrate the brand’s centenary.
MG Motor South Africa says the “exact dates [of its official relaunch] have still to be confirmed” (as it is still “in the process of finalising” its plan) but adds that “it will be to[wards] the end of the year”.
Though the brand’s local website is not yet up and running, it created an “MG Motor South Africa” profile on Facebook as recently as 3 September 2024. In addition, the Hatfield Motor Group – a well-known multi-franchise dealer network – recently posted details on its website about 2 soon-to-open MG dealerships.
While this page on the Hatfield Motor Group’s site has curiously since been removed, we tracked down a cached version, which included the image below as well as the following text: “Prepare to rediscover the iconic MG car brand as it returns to South Africa with two new dealerships opening up in Rivonia and Midrand on 1 October 2024”.
For the record, the listed address of MG Motor South Africa’s headquarters is 93 Grayston Drive in Sandton. For now, however, it’s unclear whether the division will relaunch as a wholly owned subsidiary of SAIC Motor or whether a private company has been appointed to distribute the marque locally.
As a reminder, the MG brand – which was founded 100 years ago as “Morris Garages” in the United Kingdom – is owned by Chinese group SAIC Motor, a state-owned manufacturer also responsible for the LDV marque. Officially under the stewardship of Shanghai-based SAIC Motor since around 2007, MG began its previous re-entry to South Africa late in 2011, though again exited the local market in 2016.
FiestaST
Honorary Master
FiestaST
Honorary Master
Demand for used cars outpacing new models by more than two-to-one
Demand for used cars is currently outpacing that for new cars by more than two-to-one as economic realities continue to weigh down on consumers.
This is the trend seen in WesBank’s Business Intelligence Data for the first half of 2024, which showed that 688,316 customers had applied for used car loans, versus 337,061 new car applications.
“The main reason for the sizeable interest in used cars is affordability,” said WesBank’s communications head Lebo Gaoaketse.
“The downside, though, to buying a pre-owned car is that the bundled maintenance or service plan, as well as manufacturer’s warranty, might have expired or be nearing expiration,” Gaoaketse cautioned.
“This means the owner will have to foot the bill for the ongoing maintenance of the vehicle.”
Demand for used cars is currently outpacing that for new cars by more than two-to-one as economic realities continue to weigh down on consumers.
This is the trend seen in WesBank’s Business Intelligence Data for the first half of 2024, which showed that 688,316 customers had applied for used car loans, versus 337,061 new car applications.
“The main reason for the sizeable interest in used cars is affordability,” said WesBank’s communications head Lebo Gaoaketse.
“The downside, though, to buying a pre-owned car is that the bundled maintenance or service plan, as well as manufacturer’s warranty, might have expired or be nearing expiration,” Gaoaketse cautioned.
“This means the owner will have to foot the bill for the ongoing maintenance of the vehicle.”
FiestaST
Honorary Master
FiestaST
Honorary Master
FiestaST
Honorary Master
Naamsa report shows BRICS+ has yet to benefit South Africa’s automotive exports
South Africa’s automotive export industry has derived very little benefit from South Africa’s admission to the BRICS economic group (Brazil, Russia, India, China and SA) in 2010.
This is the finding of a new research report released by Naamsa - The Automotive Business Council - this week.
However, in a broader sense, the formation of BRICS has most certainly enhanced South Africa’s international stature as well as its trade and economic relations with these major economic forces, the report stated.
Furthermore, the recent expansion to BRICS+, now including Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates, could help to optimise automotive supply chains within the bloc.
“By leveraging the unique strengths of each member country, BRICS+ can create more efficient and cost-effective supply chains,” Naamsa said.
South Africa’s automotive export industry has derived very little benefit from South Africa’s admission to the BRICS economic group (Brazil, Russia, India, China and SA) in 2010.
This is the finding of a new research report released by Naamsa - The Automotive Business Council - this week.
However, in a broader sense, the formation of BRICS has most certainly enhanced South Africa’s international stature as well as its trade and economic relations with these major economic forces, the report stated.
Furthermore, the recent expansion to BRICS+, now including Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates, could help to optimise automotive supply chains within the bloc.
“By leveraging the unique strengths of each member country, BRICS+ can create more efficient and cost-effective supply chains,” Naamsa said.
FiestaST
Honorary Master
FiestaST
Honorary Master
Double-cab & single-cab bakkies: SA’s top sellers in August 2024
In August 2024, the Hilux and Ranger dominated SA’s bakkie sales charts. But which one led the single-, extended- and double-cab segments? We have the figures!
You’ve probably already seen our list of South Africa’s best-selling bakkies for August 2024, with just 215 units separating the Toyota Hilux and the Ford Ranger. Now, however, we’ve managed to lay our paws on detailed sales figures, showing the respective performances of the top 1-tonne bakkies in the single-, extended- and double-cab segments.
As a reminder, Naamsa’s monthly sales report unfortunately doesn’t include a breakdown of the 3 bakkie body styles. Thankfully, however, the studious folks over at Lightstone Auto have again assisted us with these frankly fascinating registration figures.
For the record, the Hilux headed the bakkie charts overall – as it has every month this year so far – in August 2024, finishing on 2 527 units (down 16.4%, month on month). The Ford Ranger (2 312 units) wasn’t far behind in 2nd position, while the Isuzu D-Max again completed the top 3, settling on 1 634 units.
According to our records, which are based on collated figures reported to Naamsa, the Hilux (21 293 units) is still well ahead in the overall race, year to date. The Ranger (16 782 units) remains in 2nd position, followed by the D-Max (12 724 units).
In August 2024, the Hilux and Ranger dominated SA’s bakkie sales charts. But which one led the single-, extended- and double-cab segments? We have the figures!
You’ve probably already seen our list of South Africa’s best-selling bakkies for August 2024, with just 215 units separating the Toyota Hilux and the Ford Ranger. Now, however, we’ve managed to lay our paws on detailed sales figures, showing the respective performances of the top 1-tonne bakkies in the single-, extended- and double-cab segments.
As a reminder, Naamsa’s monthly sales report unfortunately doesn’t include a breakdown of the 3 bakkie body styles. Thankfully, however, the studious folks over at Lightstone Auto have again assisted us with these frankly fascinating registration figures.
For the record, the Hilux headed the bakkie charts overall – as it has every month this year so far – in August 2024, finishing on 2 527 units (down 16.4%, month on month). The Ford Ranger (2 312 units) wasn’t far behind in 2nd position, while the Isuzu D-Max again completed the top 3, settling on 1 634 units.
According to our records, which are based on collated figures reported to Naamsa, the Hilux (21 293 units) is still well ahead in the overall race, year to date. The Ranger (16 782 units) remains in 2nd position, followed by the D-Max (12 724 units).
FiestaST
Honorary Master
Illegal grey imports pose a growing threat to SA’s motor industry - here’s how to spot one
There’s no denying the allure of affordable used vehicles to cash-strapped South Africans, but grey imports pose an increasing threat to the country's automotive industry, and can potentially be dangerous too, industry experts say.
Grey vehicle imports are used vehicles brought into the country via unauthorised channels, bypassing the government’s regulatory frameworks.
The growth of grey imports poses a threat to jobs across the automotive value chain as fewer vehicles would theoretically be sold through official channels.
It is estimated that around 30,000 grey imports are currently ‘sneaking’ their way into South Africa each year. These mainly come from neighbouring countries like Lesotho and Botswana, where the importation of used vehicles is permitted, former Kia CEO Gary Scott said at the 2024 AutoTrader Dealer Convention.
There’s no denying the allure of affordable used vehicles to cash-strapped South Africans, but grey imports pose an increasing threat to the country's automotive industry, and can potentially be dangerous too, industry experts say.
Grey vehicle imports are used vehicles brought into the country via unauthorised channels, bypassing the government’s regulatory frameworks.
The growth of grey imports poses a threat to jobs across the automotive value chain as fewer vehicles would theoretically be sold through official channels.
It is estimated that around 30,000 grey imports are currently ‘sneaking’ their way into South Africa each year. These mainly come from neighbouring countries like Lesotho and Botswana, where the importation of used vehicles is permitted, former Kia CEO Gary Scott said at the 2024 AutoTrader Dealer Convention.
FiestaST
Honorary Master
FiestaST
Honorary Master
GWM climbs! SA’s best-selling brands in September 2024
South Africa’s new-vehicle market suffered a 4.1% year-on-year drop in sales in September 2024. Here’s your market overview, including Mzansi’s most popular brands…
Though there’s still hope of improvements in the final quarter of the year, South Africa’s new-vehicle market didn’t manage to return to growth in September 2024, with sales falling 4.1% year on year to 44 081 units. Still, at least that tally represented a (marginal) 1.1% increase compared with August 2024’s effort.
Exports, meanwhile, fell a considerable 38.1% year on year in September to 21 964 units (the 2nd lowest total of 2024). Year to date, exports stand at 289 198 units, a significant drop of 19.7% compared with the same 9-month reporting period in 2023. Local domestic sales are also behind in the year-to-date race, with that tally currently sitting at 401 169 units (5.8% down).
Out of the total reported industry sales in September 2024, Naamsa estimated that 79% represented registrations via the dealer channel, while a hefty 15% were sales to the vehicle-rental industry, 3% to government and 2% to industry corporate fleets.
Again bucking the general market trend, the new passenger-vehicle segment grew 2% year on year to 30 218 units in September 2024, with the rental industry representing a whopping 28% of that total. Meanwhile, the light-commercial vehicle segment slipped 17.1% year on year to 10 914 registrations (a decline no doubt amplified by the discontinuation of the Nissan NP200).
New-vehicle sales summary for September 2024
- Aggregate new-vehicle sales of 44 081 units decreased by 4.1% (1 889 units) compared to September 2023.
- New passenger-vehicle sales of 30 218 units increased by 2.0% (112 units) compared to September 2023.
- New light-commercial vehicle sales of 10 914 units decreased by 17.1% (2 257 units) compared to September 2023.
- Export sales of 21 964 units decreased by 38.1% (13 535 units) compared to September 2023.
10 best-selling automakers in SA in September 2024
1. Toyota – 10 890 units
2. Volkswagen Group – 5 885 units
3. Suzuki – 5 023 units
4. Hyundai – 2 841 units
5. Ford – 2 823 units
6. Isuzu – 1 960 units
7. GWM – 1 740 units
8. Chery – 1 614 units
9. Renault – 1 426 units
10. Nissan – 1 425 units
South Africa’s new-vehicle market suffered a 4.1% year-on-year drop in sales in September 2024. Here’s your market overview, including Mzansi’s most popular brands…
Though there’s still hope of improvements in the final quarter of the year, South Africa’s new-vehicle market didn’t manage to return to growth in September 2024, with sales falling 4.1% year on year to 44 081 units. Still, at least that tally represented a (marginal) 1.1% increase compared with August 2024’s effort.
Exports, meanwhile, fell a considerable 38.1% year on year in September to 21 964 units (the 2nd lowest total of 2024). Year to date, exports stand at 289 198 units, a significant drop of 19.7% compared with the same 9-month reporting period in 2023. Local domestic sales are also behind in the year-to-date race, with that tally currently sitting at 401 169 units (5.8% down).
Out of the total reported industry sales in September 2024, Naamsa estimated that 79% represented registrations via the dealer channel, while a hefty 15% were sales to the vehicle-rental industry, 3% to government and 2% to industry corporate fleets.
Again bucking the general market trend, the new passenger-vehicle segment grew 2% year on year to 30 218 units in September 2024, with the rental industry representing a whopping 28% of that total. Meanwhile, the light-commercial vehicle segment slipped 17.1% year on year to 10 914 registrations (a decline no doubt amplified by the discontinuation of the Nissan NP200).
New-vehicle sales summary for September 2024
- Aggregate new-vehicle sales of 44 081 units decreased by 4.1% (1 889 units) compared to September 2023.
- New passenger-vehicle sales of 30 218 units increased by 2.0% (112 units) compared to September 2023.
- New light-commercial vehicle sales of 10 914 units decreased by 17.1% (2 257 units) compared to September 2023.
- Export sales of 21 964 units decreased by 38.1% (13 535 units) compared to September 2023.
10 best-selling automakers in SA in September 2024
1. Toyota – 10 890 units
2. Volkswagen Group – 5 885 units
3. Suzuki – 5 023 units
4. Hyundai – 2 841 units
5. Ford – 2 823 units
6. Isuzu – 1 960 units
7. GWM – 1 740 units
8. Chery – 1 614 units
9. Renault – 1 426 units
10. Nissan – 1 425 units
FiestaST
Honorary Master
FiestaST
Honorary Master
FiestaST
Honorary Master
FiestaST
Honorary Master
FiestaST
Honorary Master
FiestaST
Honorary Master
FiestaST
Honorary Master
New vehicle sales decline continues in September, but green shoots showing: Top 15 carmakers
The South African new vehicle market has yet to benefit from improving economic sentiment in the country, with September seeing a modest year-on-year decline.
Figures released by Naamsa - The Automotive Business Council - show that 44,081 new vehicles were sold in September, a 4.1% decrease versus the same month last year.
This decline was driven by light commercial vehicles and bakkies, whose September total of 10,914 units was a 17.1% year-on-year drop. The passenger car market grew by 2%, fuelled by sold demand from the rental car industry, which accounted for 28% of sales.
Overall vehicle sales for the first nine months of 2024 are 5.8% lower than the equivalent period in 2023, Naamsa said, but the industry association is expecting the market to take a positive turn before the end of this year as easing inflation brings relief to household budgets.
“As the country anticipates further interest rate reductions, the costs of borrowing are expected to decline, which may stimulate economic activity, even though immediate improvements in vehicle affordability may be limited,” Naamsa said.
TOP 15 Manufacturer Sales: September 2024
1. Toyota - 10,890
2. Volkswagen Group SA - 5,885
3. Suzuki Auto 5,023
4. Hyundai - 2,841
5. Ford Motor Co - 2,823
6. Isuzu Motors 1,960
7. GWM SA - 1,740
8. Chery Auto - 1,614
9. Renault - 1,426
10. Nissan- 1,425
11. Kia SA - 1,284
12. Mahindra - 1,014
13. BMW Group - 961
14. Mercedes-Benz 535
15. Omoda & Jaecoo - 506
The South African new vehicle market has yet to benefit from improving economic sentiment in the country, with September seeing a modest year-on-year decline.
Figures released by Naamsa - The Automotive Business Council - show that 44,081 new vehicles were sold in September, a 4.1% decrease versus the same month last year.
This decline was driven by light commercial vehicles and bakkies, whose September total of 10,914 units was a 17.1% year-on-year drop. The passenger car market grew by 2%, fuelled by sold demand from the rental car industry, which accounted for 28% of sales.
Overall vehicle sales for the first nine months of 2024 are 5.8% lower than the equivalent period in 2023, Naamsa said, but the industry association is expecting the market to take a positive turn before the end of this year as easing inflation brings relief to household budgets.
“As the country anticipates further interest rate reductions, the costs of borrowing are expected to decline, which may stimulate economic activity, even though immediate improvements in vehicle affordability may be limited,” Naamsa said.
TOP 15 Manufacturer Sales: September 2024
1. Toyota - 10,890
2. Volkswagen Group SA - 5,885
3. Suzuki Auto 5,023
4. Hyundai - 2,841
5. Ford Motor Co - 2,823
6. Isuzu Motors 1,960
7. GWM SA - 1,740
8. Chery Auto - 1,614
9. Renault - 1,426
10. Nissan- 1,425
11. Kia SA - 1,284
12. Mahindra - 1,014
13. BMW Group - 961
14. Mercedes-Benz 535
15. Omoda & Jaecoo - 506
FiestaST
Honorary Master
Top 5 Exporters – September 2024
Similar to the new car domestic market, the export figures in September reflect a shrunken data set albeit by a significant amount. The Silverton-produced Ford Ranger continues to lead the charge while BMW is key in the production decreases as a result of Rosslyn being retooled for the next-generation BMW X3. Here is who made the cut.
Naamsa reported that ongoing challenges such as high inflation and interest rates have hampered the new vehicle market in South Africa. CEO Mikel Mabasa echoed this, stating that 2024 was predicted to have a tough start but expected improvements in the second half amidst low fuel prices, a strengthened Rand and a stable and investment-appealing Government of National Unity bode well for better performance.
In terms of the vehicle market, new vehicle sales were down by 4.1% while exports took a major hit of 38.1% with only 21 964 units registered during the month. The year-to-date data reveals that new vehicle sales locally reached 401 169 units in the month which is an overall 5.8% decrease compared to the same period in 2023. Exports suffered the same fate reflecting 289 198 units which represents a 19.7% drop from the corresponding period last year. There are several factors listed by Naamsa for this including the slowing demand for older vehicle models and tightening environmental regulations in key export markets like Europe. A look at the data below shows the omission of BMW Group, who only registered 1 vehicle export in the month which is an anomaly to the thousands of units normally listed. This is courtesy of Plant Rosslyn being retooled for the next-generation X3 which is set to hit showrooms within the next few months.
Top 5 Exporters for September 2024
Ford – 8 603 (up from 8 123)
Mercedes-Benz – 7 700 (up from 7 600)
Volkswagen – 2 449 (down from 2 910)
Toyota – 2 031 (up from 1 701)
Nissan – 434 (down from 630)
www.carmag.co.za
Similar to the new car domestic market, the export figures in September reflect a shrunken data set albeit by a significant amount. The Silverton-produced Ford Ranger continues to lead the charge while BMW is key in the production decreases as a result of Rosslyn being retooled for the next-generation BMW X3. Here is who made the cut.
Naamsa reported that ongoing challenges such as high inflation and interest rates have hampered the new vehicle market in South Africa. CEO Mikel Mabasa echoed this, stating that 2024 was predicted to have a tough start but expected improvements in the second half amidst low fuel prices, a strengthened Rand and a stable and investment-appealing Government of National Unity bode well for better performance.
In terms of the vehicle market, new vehicle sales were down by 4.1% while exports took a major hit of 38.1% with only 21 964 units registered during the month. The year-to-date data reveals that new vehicle sales locally reached 401 169 units in the month which is an overall 5.8% decrease compared to the same period in 2023. Exports suffered the same fate reflecting 289 198 units which represents a 19.7% drop from the corresponding period last year. There are several factors listed by Naamsa for this including the slowing demand for older vehicle models and tightening environmental regulations in key export markets like Europe. A look at the data below shows the omission of BMW Group, who only registered 1 vehicle export in the month which is an anomaly to the thousands of units normally listed. This is courtesy of Plant Rosslyn being retooled for the next-generation X3 which is set to hit showrooms within the next few months.
Top 5 Exporters for September 2024
Ford – 8 603 (up from 8 123)
Mercedes-Benz – 7 700 (up from 7 600)
Volkswagen – 2 449 (down from 2 910)
Toyota – 2 031 (up from 1 701)
Nissan – 434 (down from 630)
Top 5 Exporters – September 2024
Down by a whopping 38.1% in September, South Africa's vehicle export figures suffered a significant decrease. Here is why.
www.carmag.co.za