The new-vehicle market is showing “unbelievable resilience” in the face of negative economic pressures, Mark Dommisse, chair of the National Automobile Dealers’ Association, said on Tuesday.
Dommisse was speaking after latest industry figures show domestic and export sales continued to grow in October despite a series of obstacles, including a Transnet strike that briefly interrupted rail and port activities.
The figures, released by the National Association of Automobile Manufacturers of SA (Naamsa), show that sales of sales of cars and commercial vehicles last month totalled 45,966, an increase of 11.4% from the 41,251 units of October 2121.
That took the aggregate market for the first 10 months of 2022 to 437,467 — 13.1% ahead of the 386,754 at the same stage last year. The gap is slightly inflated by last year’s numbers not including Chinese car brand Chery, which only recently began reporting its sales. It sold 1,228 vehicles in October.
Last month’s new-car sales totalled 30,597 units, 10.4% more than last year’s 27,716. For the year to date, the car market is up 19.8% — 301,137 units compared with 251,288.
Sales of light commercial vehicles were slightly lower, but that was expected after Toyota SA halted production for four months earlier this year because of flooding.
Sales of medium and heavy trucks are well ahead of 2021.
Exports also held up well last month. Car shipments rose 34.6% to 18,023 units, from 13,390 in October 2021. Bakkie exports dipped slightly but the overall export market grew 16.1%, from 25,407 units to 29,508.
For the first 10 months of 2021 industry exports were up 14.4%, from 256,017 units to 292,900.
WesBank marketing head Lebogang Gaoaketse said at the current rate new vehicle sales for 2022 could breach 500,000 for the first time since 2019, when they reached 536,612. Naamsa, in its latest quarterly review, predicts 505,000.
CEO Mikel Mabasa said on Monday: “Growth prospects for the balance of the year remain constrained as higher interest rates and consequent higher debt-servicing costs weigh on disposable income.”
Dommisse, though, remained bullish. He said the market’s continuing strength was “astounding” in a year “rocked by floods, strikes, rising interest rates, load-shedding, high fuel prices, a struggling economy and stock shortages”.
Update: November 1 2022
This story has been updated with additional information.
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