The SA Vehicle Industry Thread

The shocking truth of what's going on in the SA used vehicle market

We can't stress just how important it is to deal with reputable dealerships and sellers when buying a used vehicle. Buying a second-hand car can be an exciting purchase and a good economical decision provided there are no unexpected surprises. The reliability of a second-hand car is at the forefront of most buyers' minds. Meanwhile, to others, the fear of purchasing a vehicle that was previously involved in a serious accident could be that deal-breaker.

The reality is that vehicles that have been severely damaged are often repaired and end up back on the road, but the quality of the repair job and the severity of the damage play a huge part in ensuring the safety and road-worthiness of a vehicle.

Richard Green, National Director of the South African Motor Body Repairers' Association (SAMBRA), says the challenge in South Africa is that there is no way of easily checking if a particular car has been written off previously in an accident and this makes it difficult for consumers to access if the apparently showroom-condition car they bought is exactly what it claims to be.

Taken for a ride

Green says that just last week a customer brought a two-year-old bakkie into a SAMBRA Repair Shop in Bela Bela. With just 28 267km on the clock, the owner had no idea her vehicle had been in an accident previously and had been so poorly repaired that is was structurally unsafe.

“The front body bumper absorber, which is a structural and stabilising component in most cars, and this case forms part of the front cradle panel had been heated or welded together so poorly that the metal strength was compromised, causing the panel to start rusting, showing early signs of metal fatigue. As it forms part of the crumpling zone of a vehicle, it should definitely have been replaced with a new part.”

 
SA’s new and used car market in a Covid-19 world: Experts weigh in

'Buying used', as you might have already learned 'the hard way', comes with its challenges, such as assurance of ownership history and on-time maintenance.

Just a few weeks ago, we reported on a used vehicle that was shoddily repaired after being involved in an accident, only to be sold on to an unsuspecting customer who is now suffering huge economic loss as a consequence.

The thing is, there are plenty trustworthy used car dealers out there, and there are good used cars to be had for good prices. We always advise readers to deal with reputable dealerships to ensure they don't buy a lemon so to speak.

With so many South Africans feeling the pinch of a suppressed economy, I thought it might be a good idea to catch up with a few industry insiders to see what they have to say about the car market, demand for pre-owned vehicles in particular, and the benefits and challenges alluded to earlier as we march into the second half of the year.

 
SA’s new-vehicle sales drop 30 percent year-on-year in June 2020

Naamsa has released its new-vehicle sales statistics for June 2020, which show a 30,7 percent fall compared with the same month last year.

As the organisation points out, the country’s automotive industry was able to resume full operations in June 2020 under the current COVID-19 lockdown restrictions. Still, despite being “markedly up” from the previous two months, the new-vehicle market continued to “remain under severe pressure”.

According to Naamsa, June 2020 new-vehicle sales reflected a “substantial decline” of 14 086 units to 31 867 units. Export sales, at 18 796 units, meanwhile, registered a fall of 11 871 units or 38,7 percent compared with June last year.

Overall, out of the total reported industry sales of 31 867 vehicles, an estimated 29 100 units or 91,3 percent represented dealer sales, 4,6 percent sales to government, 3,7 percent to industry corporate fleets and an estimated 0,4 percent to the vehicle rental industry.

Naamsa says the June 2020 new passenger car market registered a “substantial” year-on-year decline of 9 667 cars or 33,4 percent to 19 264 units.


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New Cars Sales in SA: June 2020

New Car Sales Summary: June 2020

- Aggregate new vehicle sales at 31 867 units down by 30% (-14 086 units) compared with June 2019

- New passenger car sales of 19 264 units down by 33% (-9 667 units) compared with June 2019

- Light Commercial Vehicle (LCV) sales of 10 189 units down by 29% (-4 308 units) compared with June 2019

- Exports of 18 796 units down by 38.7% (-11 871 units) compared with June 2019

Top-Selling Car Brands in South Africa for June 2020

1. Toyota - 8 442 units

2. Volkswagen - 4 448 units

3. Hyundai - 2 457 units

4. Ford - 2 138 units

5. Isuzu - 2 040 units

 
Suzuki sold 1433
Renault 1152
Haval 767
Honda 180
Opel 88
Peugeot and Citroen 88
Subaru 32
Kia 941
 
South Africa’s 10 best-selling car and LCV brands for June 2020

Naamsa has released its industry report for March 2020 but has opted to no longer show South Africa’s individual model sales figures, instead putting out only brand aggregate sales and export numbers.

Unfortunately, that means we’re not able to bring you our usual lists of SA’s best- and worst-selling vehicles. So, we’ll have to settle for a list of the 10 best-selling passenger car and light-commercial vehicle brands instead.

For the record, Naamsa said new-vehicle sales in June 2020 showed a 30,7 percent fall compared with the same month last year. As the organisation points out, the country’s automotive industry was able to resume full operations in June 2020 under the current COVID-19 lockdown restrictions.

South Africa’s 10 best-selling brands for June 2020:

1. Toyota: 8 442 units (with 3 298 exports)
2. Volkswagen Group: 4 448 units (with 4 731 exports)
3. Hyundai: 2 457 units
4. Ford: 2 138 units (with 1 378 exports)
5. Isuzu: 2 040 units (with 314 exports)
6. Nissan: 2 010 units (with 346 exports)
7. Suzuki: 1 433 units
8. Mercedes-Benz SA: 1 410 units, estimated (with 5 305 exports)
9. Renault: 1 152
10. Kia: 941

 
SA vehicle sales | These automakers sold the most cars in June 2020


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'Slight improvement' in new vehicle sales for June an encouraging sign for rest of 2020

• Car sales in June saw a slight improvement.

• 91.3% of new vehicle sales was through the dealer channel.

• Buyers leaning towards mid- to low-end-priced vehicles.

The National Automobile Dealers Association (NADA), a proud member of the RMI, is encouraged to see a slight improvement in new vehicle sales figures for June.

Nonetheless, there is a long way to go before the market sees any recovery.

Following the disastrous months in March, April and May, we saw positive activity on dealership floors in June. Of the total reported industry sales of 31 867 vehicles across all segments, an estimated 29 100 units, or 91.3%, represented dealer sales.

 
South Africa’s 10 best-selling car and LCV brands for June 2020

Naamsa has released its industry report for March 2020 but has opted to no longer show South Africa’s individual model sales figures, instead putting out only brand aggregate sales and export numbers.

Unfortunately, that means we’re not able to bring you our usual lists of SA’s best- and worst-selling vehicles. So, we’ll have to settle for a list of the 10 best-selling passenger car and light-commercial vehicle brands instead.

For the record, Naamsa said new-vehicle sales in June 2020 showed a 30,7 percent fall compared with the same month last year. As the organisation points out, the country’s automotive industry was able to resume full operations in June 2020 under the current COVID-19 lockdown restrictions.

South Africa’s 10 best-selling brands for June 2020:

1. Toyota: 8 442 units (with 3 298 exports)
2. Volkswagen Group: 4 448 units (with 4 731 exports)
3. Hyundai: 2 457 units
4. Ford: 2 138 units (with 1 378 exports)
5. Isuzu: 2 040 units (with 314 exports)
6. Nissan: 2 010 units (with 346 exports)
7. Suzuki: 1 433 units
8. Mercedes-Benz SA: 1 410 units, estimated (with 5 305 exports)
9. Renault: 1 152
10. Kia: 941


I find it rather disappointing that the NAAMSA figures published for general cidon't show sales per model and now also lump passenger and lcv in one pile.w
Another interesting and valuable feature of the past was the number of cars sold to government and rental companies.
 
The state of South Africa’s car market after one full month of sales

The new and used vehicle market has experienced its first full month of activity in June since South Africa was put into a nationwide lockdown on March 26.

Although vehicle sales didn’t hit pre-Covid-19 expectations (nor did they breach last year’s numbers for the same month) the sheer number of cars that found new homes last month should serve as a clear indicator that our appetite for hot wheels won’t be put on lockdown.

Sales are happening but the market is still under pressure

According to the National Association of Automobile Manufacturers of South Africa (Naamsa), new vehicle sales were 30.7% down when compared with June last year, a decline of 14 086 units to 31 867. This was despite high levels of demand for new vehicles according to WesBank’s application data. The vehicle financier said application numbers for new car finance through its in-house and dealer channels were similar to those experienced towards the end of last year and at higher volumes than June 2019.

In a statement released last night, WesBank’s head of marketing Lebogang Gaoketse said: “There were a number of key changes to market behaviour that could be the beginning of new trends as car buyers adapt to short-term budget pressures as a result of the pandemic. We expect these may become longer-term changes as the impact of Covid-19 ripples through the value chain.”

 
Bucking the trend: Suzuki SA’s dealer network breaks sales record!

Suzuki Auto South Africa says it enjoyed a “stellar sales performance” in June 2020, with its dealer network bucking the trend and breaking its sales record despite the impact of the COVID-19 lockdown.

The Japanese firm’s local division registered a total of 1 433 units in June, with all but one sold through its dealer network. While that’s not quite an overall record (Suzuki registered 1 696 units in February 2020), it is a dealer record.

Suzuki SA says its latest sales performance represents a 7,17 percent share of the country’s passenger vehicle market. It comes despite the industry showing a 30,7 percent fall in total new-vehicle sales compared with the same month in 2019.

So, which vehicles drove the firm’s sales in June? Well, the new S-Presso (despite a recent price increase to R139 900, the base model is still SA’s cheapest new car) led the charge with 555 units registered, while the Swift (297) and Jimny (249) also made valuable contributions.

 
Suzuki Trifecta: 3 models that prove why they are selling like hot cakes

June’s National Association of Automobile Manufacturers (Naamsa) new car sales figures show that Suzuki Auto SA has leapt up the South African sales charts. The business sold 1 433 units, with all but one unit sold through the dealer network. Suzuki, in fact, stood 7th overall in the sales rankings last month, giving it a 4.49% share of the total vehicle market and a 7.17% share of the passenger vehicle market.

I hadn’t experienced a new Suzuki in a while so I thought it would be a good idea to find out why South Africans are flocking to dealerships to buy these cars. I had a particular approach, however, as there are three cars I wanted to experience with three particular types of buyers in mind. I lined up a Suzuki S-Presso as a first-time car buyer, a Suzuki Swift Sport as a first-time hot-hatch buyer and a Suzuki Jimny as a first-time adventure vehicle buyer.

KEY TAKEAWAY

At the end of this rather lengthy feature, you should note that I am not the biggest Suzuki fan but my recent experience with the brand’s products has changed my mind about what it has to offer.

There are no pretenses here. The dealers are straightforward with their interactions and the cars are priced well considering they are fully imported. I popped into a local Suzuki dealer to “complain” about my Swift Sport test car’s lumpy ride at the start of the test period, and with no hesitation, they pulled the car into the workshop and immediately checked the basics. The tyre pressures were out, which I knew, because I had deflated a tyre, and they picked this up immediately. It’s just a reassuring experience that ties in the with the rise of the brand in terms of sales and popularity.

I believe that as Suzuki’s products are upgraded and refined and diversified even further, they might even challenge for a top-five spot in SA’s car market. If you’re in the market for a new car, I’d certainly recommend one of the cars I experienced last month, alternatively, if you need something bigger, go kick the Vitara’s tyres this weekend.

 
until people decide that they cant fix them after motor-plan expires and resale value tanks.
when people start Hijacking Renault then we can start talking about it being cool.
Don't be so pessimistic. :D
 
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