Motor dealers are relieved after a December new-vehicle flurry saw 2022 full-year sales fall just 1.4% short of pre-Covid levels.
National Automobile Dealers Association (Nada) director Gary McCraw described December sales of cars and commercial vehicles as “stunning” after they outperformed December 2021 by 16.2% — 41,783 units to 35,933.
According to figures released on Monday by the National Association of Automobile Manufacturers of SA, that brought the full-year total to 528,963, a 13.9% gain on 2021. More significantly, it approached the 536,612 units sold in 2019, before Covid-19 wrecked demand in SA as in the rest of the world. Though after a strong start to the year, the local market never looked like outperforming 2019, the December rush brought it closer than most people had expected.
In December, the motor industry exported 26,306 vehicles — 24.2% more than the 21,172 of December 2021. This took the 2022 total to 351,450, which was 17.9% more than the previous year’s 298,020. Before Covid-19 in 2019, the number was 387,092.
The only downside for dealers is that consumers are buying cheaper vehicles. Sales of luxury and executive cars are losing out to more versatile sports-utility and crossover vehicles. By rights, say some analysts, the 2022 market should have been weaker in the face of load-shedding, several interest-rate rises, inflation, a weakening currency, sky-high fuel prices and sharplydeclining disposable income.
Market leader Toyota’s four-months production shutdown because of flood damage to its Durban assembly plant also failed to have the feared effect as the company managed to source thousands of imported vehicles. McCraw said the newvehicle market “continues to confound forecasters”. Naamsa CEO Mikel Mabasa described it as “resilient”. However, both warned against unreasonable expectations. “Many of the factors that hobbled the motor industry in 2022 will still be encountered in 2022,” said McCraw.
While McCraw expects the market to grow further in 2023, it would not be at the same rate as before. “GDP growth in SA continues to be adjusted downwards and is now expected to be at 1.1% for 2023. In view of the close correlation between new-vehicle sales and the country’s GDP growth rate, single-digit growth can be expected for 2023 as the market returns to pre-pandemic levels in local sales and exports,” Mabasa said.
Cars were the star local performers in 2022. Sales of 363,092 units outshone the previous year by 19.3%.
Light commercial vehicles were 2% better — a commendable performance considering that Toyota’s Durban plant could build no Hilux bakkies or Hiace taxis for four months. Sales of medium-sized trucks improved by 11.3%, and heavier trucks and buses by 11.7%. Exports also comfortably outperformed 2021.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.