The SA Vehicle Industry Thread

Naamsa is concerned about the country's weak automotive sector

• The National Association of Automobile Manufacturers of South Africa (Naamsa) has reacted to President Cyril Ramaphosa's economic recovery plan.

• Naamsa says the country loses close to R4-billion per year due to illegal grey imports.

• Naamsa says it has commissioned a study aimed at finding ways to stimulate new vehicle sales.

The National Association of Automobile Manufacturers of South Africa (Naamsa) notes the country's Economic Reconstruction and Recovery Plan delivered by President Ramaphosa on Thursday, 15th October 2020.

Effect of Covid-19 on the local economy

The Economic recovery plan was presented at the back of escalating fiscal and social crisis, which had been looming over time with the economy having had two quarters of recession pre-Covid-19 and further exaggerated by the impact of Covid-19 concomitated lockdowns.

The Covid-19 quarter saw the economy go into a 51% GDP contraction in the second quarter 2020 and saw the unemployment rate descended to 42% with 2.2-million people having lost their jobs according to data from StatsSA.

The infrastructure development plan should also focus on cost and efficiency in transport and ports systems for the export-oriented industries, the organisation says.

 
South Africa's double-cab bakkie sales race: stats after September 2020

We’ve managed to get our hands on double-cab bakkie sales statistics for September 2020, which allows us to see which model is winning the sales race in South Africa after the first nine months of the year.

While Naamsa no longer releases individual model sales figures to the public (though we did manage to unearth the broader bakkie stats for September 2020), a record of sales by body style is indeed kept. Thanks to our studious friends over at Lightstone Auto, we’re able to shed some light on the matter.

According to Lightstone Auto, the Toyota Hilux is still leading the double-cab pack in 2020 so far, with 12 023 units registered. Ford’s Ranger is next with 9 506 double-cab units, while Isuzu’s D-Max (including a handful of KB-badged examples sold before the switch to the aforementioned moniker) completes the podium after the first nine months of the year with 3 773 units.

For the record, in the month of September 2020, the Hilux managed 2 355 double-cab units (out of a total of 4 254 units across the range), ahead of the Ranger’s 1 736 units and the D-Max’s 378.

 

SA bakkie sales: Ford Ranger on top as Toyota Hilux dips in Oct 2020


While Naamsa no longer releases individual model sales figures to the public, we have laid our hands on information confirming South Africa’s best-selling bakkies for October 2020.

And, for a change, the Toyota Hilux isn’t on top. Instead, the Ford Ranger (2 203) ends up as the best-selling bakkie locally during the month, with its Japanese rival having to settle for an unfamiliar second (with sales interestingly falling from 4 252 units in September to 1 390 in October, with the latter month featuring a switchover to the facelifted model). The Nissan NP200, meanwhile, remains in third place with 1 230 units registered.


The Isuzu D-Max (1 131) is just behind in fourth, with the Nissan NP300 Hardbody holding steady in fifth on 451 units. The Toyota Land Cruiser Pick-Up (336) climbs one spot to grab sixth, with the GWM Steed (191) likewise up one to seventh.

South Africa’s 10 best-selling bakkies of October 2020​

1. Ford Ranger – 2 203
2. Toyota Hilux – 1 390
3. Nissan NP200 – 1 230
4. Isuzu D-Max – 1 131
5. Nissan NP300 Hardbody – 451
6. Toyota Land Cruiser Pick-Up – 336
7. GWM Steed – 191
8. Mahindra Pik Up – 176
9. Volkswagen Amarok – 108
10. Fiat Fullback – 59

 
Suzuki does it again!
Another best ever month with 2032 unit sales.

Let's look at the others:
Renault = 1673
Kia = 1478
HAVAL = 840
Mahindra = 501
Mazda = 704
PCSA Peugeot/Citroen = 126
Honda = 300

I'm worried about Honda. They are good cars, their pricing appears to be a bit out of line but their dealers are not hungry and many seem to be closing down, they are taking on other franchises to keep the pot boiling.

Such a pity that NAAMSA doesn't give a breakdown of model sales.
More importantly give an idea what vehicles are sold by the dealers and what the the rental companies take of the each manufacturers sales.
The total sales of all vehicle to rental companies is estimated at 9,4%
 
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Why South Africa’s car market could be on the road to recovery

The local car market showed signs of resilience in Quarter 3 of the year, bouncing back from an all-time low Q2, to record month-on-month increases in the number of new and used cars financed in August and last month, according to the latest TransUnion SA Vehicle Pricing Index (VPI).

While financial agreement volumes in the passenger market showed 21% year-on-year decline from Q3 last year, the market overcame rising vehicle prices, difficult trading to record 35% and 45% month-on-month increases in August and last month respectively, albeit off a low base.

This suggests that while challenging times lie ahead, the industry could be on the road to recovering from the shutdown caused by the Covid-19 pandemic, said Kriben Reddy, the vice-president of auto information solutions for TransUnion Africa.

“Overall, the global automotive industry has had another challenging quarter. In South Africa, it has been a quarter of gradual recovery in terms of business and consumer confidence, new vehicle sales, finance applications and overall demand. While the automotive industry is not yet out of the woods, the small gains made towards the end of the quarter off the back of record lows in Q2 is a real positive for the industry,” said Reddy.

The VPI showed that new vehicle pricing rose above inflation for a second-successive quarter.

The VPI for new vehicles moved to 7.6% in Q3 this year, from 3.3% in the same period last year, with the used vehicle VPI rising to 2.3% from 1.1% in Q3 last year. This follows 10 quarters of vehicle price increases remaining below inflation, and could herald a cycle of further increases, said Reddy.

 
SA car sales | Small gains for new vehicle sales, but still way down on pre-Covid numbers

• Light commercial vehicles saw a reducton of 22.6% in sales in October 2020.

• 25.4% fewer new vehicles were sold in October 2020 compared to the same period last year.

• Marketing incentives are expected over the holiday season.

Lower than 2019

The National Association of Automobile Manufacturers of South Africa (Naamsa) reported that total aggregate new vehicle sales of 38 752 units for October were 25.4% lower than the 51 968 units retailed in the same month last year. Still, the year-to-date situation after the first ten months of 2020 is even more gloomy at 196 664 units; which is 32.5% below the figure at the same stage last year.

It is interesting to note that medium and heavy truck and bus sales are faring marginally better this month. The improved showing by the heavier commercial vehicle segment signals a measure of improving confidence. This is where we are expecting significant growth once the government's infrastructure development programme gets under way.

Dealers are enjoying strong demand for used vehicles; however, getting sufficient quality pre-owned stock is problematic. This situation has been exacerbated by the limited flow of decent stock coming from the rental companies, who destocked earlier in the year when demand for hire cars fell drastically, resulting in significant downsizing of these businesses.

On the brighter side, there are several marketing incentive programmes running at local dealers as we head for the holiday season. With interest rates still low, it remains a good time for consumers to make purchases, where they can afford it.

 
New car sales in South Africa continues to fight despite pandemic

The South African motor industry continues to adapt and evolve in the wake of Covid-19, displaying a high level of resilience. As the world reels from various levels of a second-wave lockdown, manufacturers and dealers have worked hard locally to meet an apparently changing demand from South African consumers.

According to the National Association of Automobile Manufacturers of South Africa (Naamsa), 38,752 new vehicles were sold during October. This represents the fourth consecutive month of sales growth by volume since reducing levels of lockdown, albeit that it is 25,4% lower than October last year.

“Combined with low interest rates, banks’ lending appetites have supported this market growth. What is intriguing, however, is that levels of sales and levels of demand experienced at WesBank seemingly don’t correlate,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance.

“Market activity as measured by finance applications indicate a demand for vehicle finance at levels only marginally lower than October last year.”

This demand is also not unduly different year-on-year in terms of demand for finance for either new or used vehicles.

Although market volume increased by 1,516 units over September, sales were relatively worse off in October year-on-year. September sales were down 23,9% by comparison. Segment performance faired more evenly, however.

 

Toyota records it’s highest passenger sales for 2020


The introduction of Toyota Starlet to the South African market has already shaken things up in the local passenger segment. Recently launched towards the end of September, Starlet has made an impressive debut with a total of 1 102 units sold in its first full month of retail in October. Toyota South Africa Motors (TSAM) registered its highest passenger sales total of 2020 with 5 755 units – toppling the 4 610 total recorded in February.

TSAM’s passenger figures were also propped up by the outstanding sales run of Fortuner (1 349), Corolla family of cars (1 024) – including Quest, Corolla Hatch and Sedan – as well as the outgoing Etios (826). The Land Cruiser family of vehicles – though not only limited to passenger cars – recorded a total of 546 hi-riders last month. These included 137 Prado, 55 Land Cruiser 200, ten FJ Cruiser, eight Land Cruiser Station Wagon as well as 336 Land Cruiser Pick-up models. Not to be left out, another South African favourite RAV4 sold no less than 452 units while other SUVs from Toyota’s luxury arm, Lexus, also fared well with NX (14) and LX (12) and RX (11).

 
SA vehicle sales | Adapt and overcome - October 2020 fourth consecutive month of sales growth

• 38 752 new vehicles were sold in October 2020.

• New vehicle sales are down 25.4% compared to October 2019.

• October 2020 is the fourth consecutive month of sales growth.

32.5% down on October 2019

The October sales results pushed the market through the 300 000-vehicle milestone to 303 997 units year-to-date. Soberingly, this is almost 150 000 units less than the same period last year or 32.5% down.

At Wesbank, we expect interest rates to remain low for quite some time as the Government continues to make every attempt to stimulate the economy. This continues to provide a good opportunity to purchase a vehicle at some of the most affordable lending rates.

However, WesBank warned that demand in the new vehicle market might be waning off the back of Covid-19 as consumers have less need for mobility, never mind the affordability implications.

With fuel sales down between 20% and 25% and public transport demand around 30% lower, consumers are merely moving around less. The mobility element of household budgets may be shifting more towards property investment as the housing market picks up, thanks to low-interest rates and the rising need to work from home.

 
New Car Sales in SA: October 2020

The National Association of Automobile Manufacturers of South Africa (Naamsa) has released new vehicle sales figures for October 2020, with aggregate sales marginally higher than in the previous month.

According to the Naamsa, 38 752 new vehicles were sold in Mzansi last month, which represents the 4th consecutive month of sales growth by volume since the easing of the national lockdown in response to the Covid-19 pandemic, albeit that it is 25.4% lower than October last year.

Although market volume increased by 1 516 units over September, sales were relatively worse off in October year-on-year. September sales were down 23.9% by comparison. Segment performance faired more evenly, however.

Passenger car sales were 25.4% down on October 2019 to 26 793 units, a relatively better performance than in September. Light Commercial Vehicle (LCV) sales were down 27.8% to 9 644 units compared to October 2019, and a September performance that was only down 8.2%.

Top-Selling Vehicles in SA: October 2020

1. VW Polo Vivo – 2 259 units

2. Ford Ranger – 2 203 units

3. VW Polo – 2 195 units

4. Toyota Hilux – 1 390 units

5. Toyota Fortuner – 1 349 units

Top-Selling Brands (Passenger Vehicles) in SA: October 2020

1. Volkswagen – 6 063 units

2. Toyota – 5 755 units

3. Hyundai – 2 479 units

4. Suzuki – 1 963 units

4. Renault – 1 671 units

Top-Selling Brands (Overall) in SA: October 2020

1. Toyota – 8 859 units

2. Volkswagen – 5 771 units

3. Ford – 3 738 units

4. Hyundai – 2 781 units

5. Nissan – 2 365 units

 
Suzuki breaks through the 2 000-unit barrier since sales began in South Africa

In June 2008, Suzuki Auto South Africa started selling vehicles in South Africa. That month, it sold 230 units and in its first year it recorded overall sales of 2 819 units.

In October 2020, the company sold 2 032 vehicles in one month, officially breaking through the 2 000-unit barrier, setting a new overall sales record and firmly established itself as a top 6 vehicle brand in South Africa.

No fewer than 1 408 of these passenger and light commercial vehicles were sold by Suzuki dealers, with 621 units sold to fleet buyers. The total dealer sales are within striking distance of the overall dealer sales record of 1 466 units sold in September.

The sales success was made public by Naamsa, who yesterday reported the overall vehicle sales for October and for the year to date. Naamsa reports that the overall industry remains well below its 2019 year-to-date figure (450 258 sales in 2019 compared with 303 997 in 2020) and that all but a few highly popular brands are struggling to return to their pre-lockdown performance.

Naamsa recorded 731 sales of the Suzuki Swift, a stellar performance for the compact hatch, and 426 sales of the S-Presso. Following in third and fourth are the Suzuki Celerio with 147 sales and the Ertiga, which recorded 127 units sold last month.

 
SA’s new-vehicle sales down 25,4 percent year-on-year in October 2020

Naamsa says South Africa’s new-vehicle sales figures for October 2020 show a continued “downward trajectory”, albeit at a slower pace than recent months.

Domestic sales of 38 752 units saw a year-on-year decline of 13 216 units or some 25,4 percent. Export sales at 33 474 units, meanwhile, declined by 18,9 percent compared to October 2019.

“New vehicle sales in South Africa are slowly picking up but not at 2019 levels yet. We are not out of the woods yet. While vehicle exports are making a steady comeback, we remain cautiously anxious about the reports of a COVID-19 second wave across Europe which could further depress our overall outlook for the balance of this year,” said Mikel Mabasa, CEO of Naamsa.

Overall, out of the total reported industry sales of 38 752 vehicles, an estimated 32 478 units or 83,8 percent represented dealer sales, an estimated 9,4 percent represented sales to the vehicle rental industry, 3,8 percent sales to government and 3,0 percent to industry corporate fleets.

 
Suzuki Auto South Africa breaks its monthly sales record once more!

Suzuki Auto South Africa says it registered more than 2 000 units in October 2020, breaking its previous monthly sales record.

With a total of 2 032 vehicles sold in October, Suzuki Auto SA moved up to sixth on the list of best-selling automakers for the month, besting the likes of Renault, Kia, Isuzu, Mercedes-Benz and BMW.

The Japanese firm says some 1 408 units were sold through its dealership channel, with 621 units sold to fleet buyers.

So, which vehicles starred for Suzuki? Well, the Swift led the charge with 731 units, ahead of the S-Presso (426), Celerio (147), Ciaz (141) and Ertiga (127).

 
New Starlet soars as Toyota SA hits 2020 passenger-car sales high

Toyota South Africa Motors says October saw the firm record its highest passenger sales total of 2020 thus far, with the new Starlet managing 1 102 units.

The Starlet cracked four figures in its first full month on sale, according to Naamsa's figures. As a reminder, the hatchback is effectively a rebadged Suzuki Baleno (for the record, the Baleno managed just 51 units in October).

The Japanese company’s local arm registered 5 755 passenger vehicle units (from a total of 8 859 units across all segments) in October 2020, besting its effort of 4 610 in February.

The Fortuner (1 349), Corolla Quest (850) and outgoing Etios (826) also starred, while the RAV4 (452), Avanza (283) and Rush (156) provided useful contributions, too.

“The recent launch of the Starlet is part of [our] strategy to bolster our sales in the passenger car segment. We hope that the Starlet will be an appealing offering to young people and rental companies alike – due to its competitive pricing as well as its visually enticing aesthetics,” said Leon Theron, senior vice-president of sales and marketing at Toyota SA Motors.

 
Here’s which models sold best for Volkswagen SA in October 2020

For the record, Volkswagen Group South Africa registered 6 063 passenger vehicle sales over the month, including the Audi brand. In total (that is, including light- and medium-commercial vehicles), the VW Group hit 6 365 units.

So, which passenger-vehicle models performed best for the Wolfsburg-based brand in October? Well, somewhat predictably, the Polo Vivo (at 2 259 units, again SA’s best-selling passenger car for the month) was at the very top of the pile, followed by the likewise locally produced Polo hatchback on 1 589 units.

Next was the Polo Sedan (606), with the T-Cross (447) and Tiguan (354) right behind it. The outgoing Golf 7 contributed 138 units, with the Caddy MPV next on 32. The Touareg added 27 units, while the outgoing Kombi (9) and Caravelle (7) brought up the rear, just ahead of the now-discontinued Up (1).

 
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Here’s how much South Africans paid for new cars 25 years ago (1995)

The year was 1995, and South Africa was a fledgeling democracy basking in the glory of the country’s first ever Rugby World Cup win, which played a part in uniting a divided nation.

There was a lot to look forward to in the motor industry too, with the market slowly opening up following the lifting of sanctions and the creation of a new Motor Industry Development Programme that would eventually encourage local manufacturers to pursue export programmes that would allow them to produce fewer models, but at higher volumes.

However it would take until the turn of the millennium before SA’s car exports would start accelerating in a meaningful way, and imported models were still fairly rare in 1995, although momentum was picking up on that front with the recent return of brands such as Alfa Romeo, Peugeot and Volvo, and the introduction of Hyundai.

So what did South Africans pay for a new car in 1995?

Keep in mind that this is not an extensive analysis of inflation or affordability, but rather a fun look at what cars were available to buyers 25 years ago as well as how much they cost and what they cost in relation to each other. Fact is, cars were significantly cheaper back then, but people also earned a lot less.


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