March 2024 New Vehicle Sales: The market remained constrained

02 April 2024 | From Arrive Alive

naamsa says the constrained business environment amplified by weak consumer demand and the recent Easter holidays have impacted on the new vehicle market’s performance in March 2024. Aggregate domestic new vehicle sales in March 2024, at 44,237 units, reflected a decline of 5,877 units, or a fall of 11,7%, from the 50,114 vehicles sold in March 2023. Export sales recorded a decline of 8,975 units, or 27,1%, to 24,161 units in March 2024 compared to the 33,136 vehicles exported in March 2023. 

Overall, out of the total reported industry sales of 44,237 vehicles, an estimated 39,016 units, or 88,2%, represented dealer sales, an estimated 6,0% represented sales to the vehicle rental industry, 3,5% to government, and 2,3% to industry corporate fleets. 

The March 2024 new passenger car market at 26,577 units had registered a decline of 5,024 cars, or a loss of 15,9%, compared to the 31,601 new cars sold in March 2023. Car rental sales accounted for 7,8% of new passenger vehicles sales during the month. 

Domestic sales of new light commercial vehicles, bakkies and mini-buses at 14,870 units during March 2024 had recorded a decline of 672 units, or a loss of 4,3%, from the 15,542 light commercial vehicles sold during March 2023.

Sales for medium and heavy truck segments of the industry reflected a weak performance for March 2024 at 726 units and 2,064 units, respectively, which is a decline of 136 units, or 15,8% from the 862 units sold in March 2023 in the case of medium commercial vehicles, and, in the case of heavy trucks and buses a decline of 45 vehicles, or 2,1%, compared to the 2,109 units sold in the corresponding month last year. 

The March 2024 exports sales number at 24,161 units reflected a decline of 8,975 vehicles, or 27,1%, compared to the 33,136 vehicles exported in March 2023. For the first quarter 2024 exports were now 4,9% below the corresponding quarter 2023.

The new vehicle market continued its downward slope in March 2024, which already commenced eight months ago. For the first quarter 2024 aggregate new vehicle sales were now 5,3% below the corresponding quarter in 2023. The effect of the South African Reserve Bank’s aggressive monetary policy stance by hiking interest rates in an attempt to contain inflation took some time to filter through to new vehicle sales, which continue to add to the prevailing negative sentiment.

Due to ongoing cost pressures, including escalating fuel costs, along with interest rates, affordability remains a decisive factor in purchasing decisions as consumers increasingly turn to more budget-friendly vehicles. South Africa’s economic growth outlook for 2024 remains mooted, but at a projected 1,2% by the SA Reserve Bank it would still be stronger than 2023.

Only once the interest cutting cycle commences, likely during the second half of the year, along with the easing of inflation, better economic prospects are expected for the new vehicle market. This is underscored by the Absa Purchasing Managers’ Index (PMI) which reflected a further improvement in sentiment towards business in six months’ time, which rose to its most upbeat level since the start of 2023.

Vehicle exports reflected a mixed performance during the first quarter of 2024 following the record annual performance in 2023. Prospects for the balance of the year remain upbeat on the back of new model introductions by major exporters while the global economic cycle is expected to bottom out in the first half of 2024. Lower inflation, central bank easing and modest global economic growth are therefore expected to support the South African automotive industry’s export performance. 

Share This Page

Tell a friend icon Tell a Friend | Fax machine icon Print this Page

News Articles

15 Apr 2024 | From Arrive Alive
Rescue Services were on standby assisting people out of vehicles during last night's floods in Margate. Local authorities were also on the scene for assistance. Avoid the Margate area if possible, recovery workers are currently doing repairs. Rescue Services were on standby assisting
15 Apr 2024 | From Arrive Alive
The executive authority deployed the yellow fleet in Setsing, Qwa Qwa for the removal of illegal dumping sites and dumping areas at the following identified area: Beirut open dumping Area next to Tshiya, Beirut dumping area opposite Game, dumping Area in Elite near car wash( open space), dumping
15 Apr 2024 | From Arrive Alive
Two people lost their lives and one patient was transported by Er24 this afternoon when two vehicles collided on the N8 towards Petrusburg. Fire and rescue was on the scene and the road was cleared for traffic.
15 Apr 2024 | From Arrive Alive
Reaction Officers have recovered a vehicle, a white GWM C10 with registration ND 538-455 belonging to a female who was kidnapped & strangled by her husband & two accomplices last month. Reaction Unit South Africa (RUSA) began working on leads last night (Sunday) after a female made contact
15 Apr 2024 | From Arrive Alive
Med-Evac joined the search for the vehicle that washed away off the low bridge near Fiddlewood Farm in Margate during the flood. It was located this morning approximately 5km away near the freeway with three occupants still inside the vehicle. Unfortunately, the occupants did not survive. Our
15 Apr 2024 | From Arrive Alive
Cape Town – The Petroleum Oil and Gas Corporation of South Africa SOC Limited (PetroSA) a subsidiary of the Central Energy Fund SOC Limited (CEF) and Industry has been informed of the alleged discolouring of vehicles due to Unleaded Petrol 95 (ULP95) particularly in the Southern Cape region. Having
15 Apr 2024 | From Arrive Alive
Tshwane Metro Police Department (TMPD) Tactical unit members were conducting crime-prevention duties in the Laudium area on 14 April 2024. They received a complaint about a stolen vehicle that belonged to a TMPD member. The information received was that the vehicle was updating in Mamelodi. They
15 Apr 2024 | From Arrive Alive
As South Africa moves towards Alternative Energy Vehicles (AEVs), South African automotive manufacturers are expanding the array of brands, models, and derivatives within Electric and Hybrid vehicles. It is therefore imperative that training stays aligned with this trend. The Retail Motor Industry
15 Apr 2024 | From Arrive Alive
A 36-year-old female was arrested in East London yesterday after Flying Squad members received information about an unknown woman who was traveling from Bloemfontein to East London by bus. The suspect was suspected to be in possession of drugs. The bus was spotted and followed to Windmill roadhouse

News Archive