The SA Vehicle Industry Thread

India overtakes Japan to become world’s third largest car market

For the first time ever India has overtaken Japan to become the world’s third-largest automotive market in 2023, Nikkei Asia reported recently.

India's sales of new vehicles totalled at least 4.25 million units, based on preliminary results, topping the 4.2 million sold in Japan.

New vehicles delivered in India totalled 4.13 million between January and November 2022, according to the Society of Indian Automobile Manufacturers. Adding December's sales volume reported on Sunday by Maruti Suzuki, India's largest carmaker, brings the total to roughly 4.25 million units.

The top-selling vehicle models for 2022 have yet to be announced, however in November 2022 the Maruti Suzuki Baleno was the country’s top-selling model, followed by the Tata Nexon, with Maruti Suzuki’s Alto, Swift and Wagon R rounding out the top five. The Also and Wagon R have also had turns at the top in prior months.

In 2021, China continued to lead the global automotive market, with 26.27 million vehicles sold, and this status quo is likely to continued in 2022. The US remained second at 15.4 million vehicles, followed by Japan at 4.44 million units.

 
Despite the challenges, SA’s new vehicle market saw double-digit growth in 2022

The South African new vehicle market ended 2022 on a high note, with the industry recording its twelfth successive month of year-on-year growth.

According to Naamsa, a total of 528 963 new vehicles were sold during 2022, representing an increase of 13.9% over 2021, although the market was still 1.4% down versus the last pre-pandemic year 2019.

Naamsa said the lifting of all Covid-19 lockdown restrictions in 2022 provided considerable support to the new vehicle market, along with the resultant recovery in business and leisure travel.

A total of 41 783 new vehicles found homes in December, which was an increase of 16.2% over the same month in 2021. Light commercial vehicles led the way with a year-on-year growth of 16.1%, while the passenger car market grew by 15.4%.

About 89% of new vehicle sales last month took place through the dealer channels, and the rental industry accounted for 7.3% of sales, while government and corporate fleets each took a 1.5% slice.

Toyota, as you’d expect, took the top spot on the local sales charts with total sales of 11 250. It was followed by Volkswagen (5 331), Suzuki Auto (3 058), Hyundai (2 770) and Nissan (2 144).


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New vehicle sales in South Africa: December 2022

South Africa’s new-vehicle market ended the year on a positive note, with sales in December 2022 growing 16.2%. Here’s what you need to know, including a look at the country’s best-selling vehicles and most popular brands…

In December 2022, South Africa’s new-vehicle industry registered its twelfth consecutive month of year-on-year sales growth, capping a year defined by its steady recovery to just short of pre-pandemic levels. The final month of 2022 saw total new-vehicle sales in the country grow an encouraging 16.2% year on year to 41 783 units, according to Naamsa.

Though this figure is down around 15% compared with November 2022’s effort of 49 413 registrations, it nevertheless represents a sound showing in a month traditionally shortened by public holidays and year-end closures (and thus fewer trading days).

Out of the total reported industry sales of 41 783 vehicles, an estimated 37 479 units (or 89.7%) represented dealer sales, while 7.3% went to the vehicle-rental industry, 1.5% to government and another 1.5% to industry corporate fleets. Both the new passenger-vehicle and light-commercial vehicle markets reflected year-on-year increases, with the former growing 15.4% to 28 793 units and the latter 16.1% to 10 438 units. Meanwhile, December 2022’s export sales grew 24.2% year on year to 26 302 units.

For the record, South Africa’s new-vehicle sales for the full year of 2022 recovered by 13.9% to 528 963 units, though this was still 1.4% below the pre-pandemic 536 612 units sold in 2019.

Gary McCraw, Director of the National Automobile Dealers’ Association (NADA), said the sustained growth in SA’s new-vehicle sales “continues to confound forecasters”, before describing December as a “bumper” month.

“We are particularly pleased that the retail sales channel was responsible for delivering 37 479 units or 89.7% of the total vehicles sold in December, which is excellent for the health of these dealers, who are still recovering from the lengthy COVID-19 lockdowns,” McCraw explained.

New vehicle sales summary for December 2022

- Aggregate new-vehicle sales of 41 783 units increased by 16.2% (5 839 units) compared to December 2021.
- New passenger-vehicle sales of 28 793 units increased by 15.4% (3 840 units) compared to December 2021.
- New light-commercial vehicle sales of 10 438 units increased by 16.1% (1 449 units) compared to December 2021.
- Export sales of 26 302 units increased by 24.2% (5 130 units) compared to December 2021.

10 best-selling vehicles in South Africa for December 2022


1. Toyota Hilux – 2 556 units

2. Toyota Corolla Cross – 1 834 units

3. Toyota Hi-Ace – 1 539 units

4. Ford Ranger – 1 495 units

5. Volkswagen Polo Vivo – 1 421 units

6. Volkswagen Polo Hatch – 1 365 units

7. Isuzu D-Max – 1 183 units

8. Toyota Starlet – 1 036 units

9. Toyota Urban Cruiser – 945 units

10. Chery Tiggo 4 Pro – 857 units

 
10 best-selling bakkies in South Africa: December 2022

Let’s look at December 2022’s sales figures and pick out South Africa’s best- and worst-selling bakkies for the final month of the year…

South Africa’s new-vehicle market grew 16.2% year on year to 41 783 units in December 2022, while the light-commercial vehicle segment (where volume is driven primarily by bakkies) ended the final month of the year on 10 438 registrations, representing similar year-on-year growth of 16.1%.

For the record, December’s light-commercial figure is 22.5% down on November’s effort, which was clearly reflected in the individual model sales figures, with only one bakkie managing to improve its tally month on month.

The Prospecton-produced Toyota Hilux retained its position at the sharp end of the list of South Africa’s best-selling bakkies, with 2 556 examples registered in December 2022. Despite the Silverton-built Ford Ranger’s transition to a new generation (and the fact only double-cab variants of the fresh-faced model became available locally in December), the Blue Oval bakkie hung onto second place with 1 495 units, well ahead of the Struandale-manufactured Isuzu D-Max (1 183 units).

10 best-selling bakkies in South Africa for December 2022

1. Toyota Hilux – 2 556 units

2. Ford Ranger – 1 495 units

3. Isuzu D-Max – 1 183 units

4. Nissan NP200 – 718 units

5. Mahindra Pik Up – 460 units

6. Nissan Navara – 356 units

7. Toyota Land Cruiser 79 – 314 units

8. GWM P-Series – 292 units

9. GWM Steed – 279 units

10. Volkswagen Amarok – 115 units

 
South Africa’s 50 best-selling vehicles in December 2022

The South African new vehicle market ended 2022 on a high note, with December seeing 16.2% year-on-year growth, according to Naamsa, to round off a year of consistent growth.

On the December sales charts Toyota took a clean sweep of the podium, with the top three spots occupied by the Toyota Hilux (2 556), Corolla Cross (1 834) and Hi-Ace (1 539).

In fourth place overall was the Ford Ranger, which underwent a model changeover in December (you can read our impressions of the impressive new model here) and it’s going to be interesting to see how it performs in the new year.

SA’S 50 TOP SELLING VEHICLES: DECEMBER 2022

1. Toyota Hilux – 2 556
2. Toyota Corolla Cross – 1 834
3. Toyota Hi-Ace – 1 539
4. Ford Ranger – 1 495
5. Volkswagen Polo Vivo – 1 421
6. Volkswagen Polo – 1 365
7. Isuzu D-Max – 1 183
8. Toyota Starlet – 1 036
9. Toyota Urban Cruiser – 945
10. Chery Tiggo 4 Pro – 857
11. Suzuki Swift – 806
12. Hyundai Grand i10 – 780
13. Renault Kwid – 780
14. Nissan Magnite – 771
15. Haval Jolion – 734
16. Nissan NP200 – 718
17. Toyota Fortuner – 705
18. Volkswagen T-Cross – 689
19. Renault Kiger – 513
20. Hyundai Venue – 499
21. Toyota Agya – 491
22. Renault Triber – 488
23. Kia Picanto – 485
24. Mahindra Scorpio Pik-Up – 460
25. Haval H6 – 430
26. Suzuki Vitara Brezza – 420
27. BMW X3 – 395
28. Suzuki Baleno – 385
29. Toyota Land Cruiser 300 – 376
30. Nissan Navara–- 356
31. Hyundai Atos – 342
32. Suzuki S-Presso – 342
33. Hyundai i20 – 339
34. Chery Tiggo 7 Pro – 330
35. Toyota Land Cruiser PU – 314
36. Toyota Corolla Quest – 300
37. GWM P-Series – 292
38. Kia Sonet – 284
39. Ford EcoSport – 280
40. Volkswagen Tiguan – 279
41. GWM Steed – 279
42. Suzuki Celerio – 274
43. Toyota Rumion – 265
44. Volkswagen T-Roc – 264
45. Suzuki Ciaz – 221
46. Kia Rio – 206
47. Kia Seltos – 202
48. Chery Tiggo 8 Pro – 172
49. Hyundai H100 Bakkie – 167
50. Kia Pegas – 158

 
Volkswagen expects the chip shortage to end this year

According to Volkswagen the chip shortages that have been plagued the automotive industry for the past over a year, are finally coming to an end. Those prevented manufacturing from running as planned, causing huge delays and price spikes, but we are finally about to catch a break.

The German car manufacturer has revealed that there has been "constant progress" in the supply of microchips, and they predict that vehicle production will become more steady later in the year.

We've previously heard the same sentiment expressed by Nio and more recently the American Chip Trade association CTA has said the same. Nevertheless, Volkswagen acknowledges that a percentage of the production will continue to be affected by the chip shortage in 2023 and the company plans to address it.

 
Citroen's CEO thinks SUVs will soon be a thing of the past

In a recent interview, Citroen's CEO, Vincent Cobee, said that the days of SUVs are numbered. Interestingly enough, Peugeot's CEO predicts a similar faith for SUVs.

It's hard to argue with Vincent Cobee's reasoning for his prediction - aerodynamics are key for BEVs in general and SUVs have high aerodynamic resistance. Citroen's boss points that moste modern EV SUVs are rather slightly taller sedans than full-fledged SUVs.

He claims that a sedan the same aerodynamics would give you up to 80 km extra autonomy when compared to a similarly sized SUV. So he predicts those "tall sedans" will stay as the EVs take over, but the traditional SUVs won't make sense in a fully electric market.

The traditional SUVs are heavier to begin with and they require bigger batteries due to extra drag, which further amplifies the weight and cost difference. And if we are to pursue efficiency with the transition to EVs it just doesn't make sense to insist on needlessly tall, aerodynamically inefficient form facts.

 
Winners & losers: SA’s best- and worst-selling bakkies of 2022

We’ve sifted through the sales figures, done some arithmetic and identified South Africa’s best- and worst-selling bakkies of 2022. Here’s where your favourite placed…

Which bakkie is the undisputed king of South Africa based purely on sales figures? And which one is the least popular? While we suspect you already know the answer to at least one of these questions, we nevertheless thought it’d be pertinent to tally up the figures from the past 12 months and list SA’s best- and worst-selling bakkies for 2022.

Before we delve into the individual model sales numbers, it’s worth taking a brief look at how the broader new-vehicle market fared in 2022. For the record, total industry sales grew 13.9% year on year to 528 963 units, with the light-commercial vehicle sector (where the bakkies below ply their respective trades) contributing 135 666 units. For context, that latter figure is 1.9% up on 2021’s effort.

Bakkie sales in South Africa for 2022

1. Toyota Hilux – 32 203 units

2. Ford Ranger – 17 342 units

3. Isuzu D-Max – 17 062 units

4. Nissan NP200 – 12 859 units

5. Mahindra Pik Up – 8 046 units

6. Nissan Navara – 6 067 units

7. GWM Steed – 4 522 units

8. GWM P-Series – 4 183 units

9. Toyota Land Cruiser 79 – 3 517 units

10. Volkswagen Amarok – 1 896 units

11. Mahindra Bolero – 812 units

12. Mitsubishi Triton – 673 units

13. Peugeot Landtrek – 426 units

14. Mazda BT-50 – 157 units

15. Jeep Gladiator – 120 units

 
Is Volkswagen planning to build a compact bakkie in South Africa?

The Polo is Volkswagen South Africa’s export hero, but with the hatchback model facing an uncertain future in Europe, the local division is looking at other options to lessen reliance on it.

Late last year Volkswagen Passenger Cars global CEO Thomas Schäfer said the company was considering adding a third model to the VWSA production line in Kariega in the Eastern Cape.

He added that this model would have an SUV-like body style, and that it would be underpinned by the same MQB-AO platform that forms the basis of the current Polo, but of course with unique body panels.

However, now it appears that a half-tonne bakkie could be in the running too, with both Engineering News and The Auto Page quoting VWSA’s new CEO Martina Biena as saying that a small commercial model was under consideration.

Engineering News said both single cab and double cab bakkie body styles could be launched as derivatives of the aforementioned ‘third model’, which makes perfect sense as design-wise an SUV body style would lend itself well to a bakkie spin-off as it would look more rugged than, say, a bakkie based on the Polo body as some have speculated about.

 
Mercedes-Benz leads local automotive exports for December 2022

Mercedes-Benz has kicked off 2023 on a high after taking the title of top exporter over the month of December, convincingly beating both Ford and Volkswagen. Here is who else contributed to local exports.

The new Mercedes-Benz AMG C63 S E Performance has caused a stir in the motoring world for doing away with the venerated, handbuilt AMG V8 and replacing it with a four-cylinder boasting impressive hybrid assistance. Despite this, the model was sampled at the Mercedes-Benz South Africa facility in East London and quickly silenced motoring journalists with its maximum combined outputs of 500 kW and 1020 N.m.

Mercedes-Benz South Africa began producing the C-Class in 1994, shortly after the global introduction of the first model (the W202, which was the successor to the compact 190 series). Since then, the German automaker has continued to produce the next three iterations of the C-Class sedan (W203, W204 and W205).

The top eight vehicle exporters for December 2022

Mercedes-Benz SA – 9 405
Ford Motor Company – 5 553
Volkswagen Group SA – 5 447
Toyota – 3 259
BMW Group – 1 748
Nissan – 422
Isuzu Motors South Africa – 191
Haval Motors SA – 65

 
SA’s top 10 automakers: 2022’s winners & losers by market share

We’ve crunched the numbers and calculated market share to see which of South Africa’s top 10 automakers grew and which ones shrunk in 2022…

The year 2022 was an intriguing (not to mention encouraging, considering the multitude of headwinds facing the market) one for South Africa’s new-vehicle industry, with total sales growing 13.9% year on year to 528 963 units. But which of the country’s mainstream automakers grew along with – or indeed faster than – the local market? And which ones shrunk?

Well, we’ve spent some time consolidating the sales figures for South Africa’s 10 best-selling automakers of 2022, which in turn gave us the opportunity to compare the latest numbers with 2021’s statistics. As a result, we were able to identify the winners and losers out of the top 10 companies last year.

Of course, we should point out a couple of caveats. Toyota’s figures, for instance, include the Lexus and Hino brands, while the Volkswagen Group incorporates Audi sales. In addition, Chery started reporting local sales figures to Naamsa only in July 2022, so unfortunately couldn’t be considered for this list. BMW and Mercedes-Benz, meanwhile, don’t consistently communicate full figures to the organisation (though both German firms may well have finished just outside the top 10 anyway).

Still, this certainly proved a worthwhile exercise, giving us a useful overview of the respective performances of the main players in South Africa’s new-vehicle market (scroll to the bottom of the story to see the full top-10 list). Here’s what we found…

South Africa’s 10 best-selling automakers of 2022

1. Toyota – 132 035 units (+12.2%)

2. Volkswagen Group – 69 801 units (-2.5%)

3. Suzuki – 47 178 units (+71.0%)

4. Hyundai – 36 047 units (+7.7%)

5. Nissan – 30 487 units (+1.0%)

6. Renault – 27 251 units (+29.6%)

7. Ford – 26 335 units (-15.4%)

8. Kia – 22 766 units (+12.9%)

9. Haval – 22 644 units (+18.8%)

10. Isuzu – 21 274 units (+7.0%)


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Just 1 unit of each of these 20 vehicles was sold in SA last month

These 20 vehicles could each muster just a single sale in South Africa in December 2022. Let’s take a look at last month’s 1-unit wonders…

While studying South Africa’s detailed new-vehicle sales figures for December 2022, we noticed an interesting phenomenon. In the passenger-vehicle segment alone – so, excluding bakkies, minibuses and trucks – as many as 20 models each managed just a single registration in the month.

Of course, there could be a variety of reasons a given model range might attract a mere solitary sale over a full (if admittedly somewhat truncated, in this case) trading month. For instance, many automakers continue to experience supply constraints driven by the semi-conductor crisis, broader shipping issues and still-frequent production interruptions.

Then there are models that simply sell in low volumes (some failed to even trouble the scorers in December). This could be because they’re pitched at a decidedly niche corner of the market, because they’re rather expensive or because they simply aren’t very popular with local buyers, for whatever reason. Examples from the list below that fit into at least 1 of these categories include Audi’s RS4 Avant, A7 Sportback and S8 sedan, as well as the fully electric e-tron GT and e-tron Sportback.

South Africa’s 1-unit wonders in December 2022

Abarth 595

Alfa Romeo Giulia

Alfa Romeo Stelvio

Audi RS4 Avant

Audi A7 Sportback

Audi S8

Audi e-tron GT

Audi e-tron Sportback

BMW i3

BMW Z4

Citroën C3

Fiat Tipo

Honda HR-V

Lexus LC

Nissan Micra

Nissan Terra

Opel Combo Life

Renault Captur

Renault Mégane

Subaru WRX

 
These were South Africa’s 10 best-selling cars and SUVs in 2022

By now it’s a well-known fact that South African vehicle sales defied the economic odds in 2022, with the overall market growing by 13.2% versus 2021. But which were the most popular models?

We compiled a list of last year’s best-selling vehicles and here you’ll get to see the top passenger car and SUV models, but be sure to look out for our best-and-worst bakkie list in the coming week.

The Toyota Hilux was still South Africa’s best-selling vehicle overall last year, with 32 203 sales, but the top passenger car was the Volkswagen Polo Vivo with a total tally of 20 866, which is an average of 1 739 units per month.

Second was the Suzuki Swift which enjoyed a surge in popularity in 2022, partly fuelled by rental demand and also proving that South Africa is hungry for affordable cars regardless of what their safety ratings might be. A total of 17 282 Swifts were sold last year, representing a monthly average of 1 440 units, and its strongest month was June, where it led the market overall with 1 925 sales.

Next came a tussle between Toyota’s latest SUV products, with the Urban Cruiser leading the way with 16 992 sales, followed by the Corolla Cross at 15 855. However, the latter was hampered by Toyota’s temporary plant closure in April, and it is set to take the lead this year with the Urban Cruiser being discontinued soon.

10 best-selling passenger cars: 2022

1. Volkswagen Polo Vivo – 20 866
2. Suzuki Swift – 17 282
3. Toyota Urban Cruiser – 16 992
4. Toyota Corolla Cross – 15 855
5. Volkswagen Polo – 15 697
6. Toyota Starlet – 12 921
7. Volkswagen T-Cross – 10 384
8. Renault Kwid – 9 769
9. Haval Jolion – 9 071
10. Renault Kiger – 8 532

 
Mahindra attains the title of the fastest-growing brand in South Africa

According to a report by the National Association of Automobile Manufacturers of South Africa (NAAMSA), Mahindra, the Indian auto manufacturer has been named the fastest-growing brand in South Africa for the year 2022.

Having commenced its operations back in 2004, Mahindra has been growing steadily in the market. It has slowly won over South African consumers with its impressive and rugged products. After being in the business for 18 years, it has amassed cumulative sales of over 75 000 units.

Naamsa reports show the automaker increased its sales volume by over 78% as compared to 2021, which is the highest of all the brands of vehicles that report their sales to NAAMSA and more than five times the market average. The total sales of Mahindra in the passenger vehicle market grew by 80% to 4 027 vehicles in 2022 and the sales of light commercial vehicles grew by 77% to 8 885 vehicles. The CEO of Mahindra South Africa, Rajesh Gupta mentioned, “Our sales success in 2022 and our title as South Africa’s fastest-growing vehicle brand can be attributed to our entire network, including our assembly plant in Durban that had to make do with component shortages and our dealers who supported customers on our waiting list”

 
I think it's time that there has to be a realisation post covid that the number of car manufacturers are numbered and have to decline. Vehicle transport is going to be like a commodity much like flights where you have only 2 big players. Realisation will be reached once governments start looking at carbon footprints of such manufacturers and realising it's a mere commodity. Electric vehicles will spurn this due to commonality of parts i.e electric motors and batteries
 
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