Strong showing in commercial vehicle sales

The steadying of interest rates by the South African Reserve Bank provided the merest, temporary relief for potential car buyers, almost immediately negated by a significant increase in the price of both petrol and diesel although naamsa | The Automotive Business Council CEO, Mikel Mabasa said the unchanged rates and improvements in inflation rates bodes well for the car market.

Just how well remains to be seen and the July new vehicles sales figures showed only a marginal increase of 1,3% compared to the same month last year. Exports, however, buoyed the sector with a 47,3% jump compared to last year.

Dealer Sales

Overall, out of the total reported industry sales of 43 389 vehicles, an estimated 878 units, or 81,8%, represented dealer sales, an estimated 14,1% represented sales to the vehicle rental industry, 17% sales to government, and 2,3% to industry corporate fleets. 

The passenger car market took the biggest hit and declined by 9,7%, this all part of an economy struggling with 10 consecutive rates hikes, fluctuating fuel prices and the general stagnation of the economy.

Domestic sales of new light commercial vehicles, bakkies and mini-buses recorded a substantial increase of 3 114 units, or a gain of 32,6% and Brandon Cohen, the recently appointed National Chairperson of the National Automobile Dealers’ Association (NADA) says: “The fact total vehicle sales are still showing growth is good news for the local motor industry and the economy in general, but what makes this performance in July special is that strong demand in most segments of the commercial vehicle market is the reason for the growth.

The Sales Picture

“This indicates growing confidence in the economy by the business world, as most commercial vehicles are bought by businesses. Light commercial vehicle (LCV) sales of 12 666 units were up 32,6% on the figure in July 2022. Sales of medium commercials were down 11,6%, but heavy trucks and buses more than made up for this decrease with an increase of 31,6% in sales compared to July 2022.”

Colin Windell – proudly CHANGECARS