PRETORIA: Despite high inflation, South Africa’s automotive industry remains optimistic for a recovery and a growth spurt in new vehicle sales, according to SA Automotive Business Council naamsa.
naamsa said at the beginning of 2024 that the first half of the year was going to be difficult but the second half would be a turnaround.
Economic challenges of 2023 like high interest rate, high inflation environment, a weaker Rand exchange rate, high fuel prices and indebted consumers have stumped new car sales thus far.
Mikel Mabasa, naamsa CEO, said their predictions and outlook for this year played out “exactly as we suspected for the first half of the year.”
Toyota still top dog
For September 2024, new vehicle sales experienced another modest decline of -4.1% and exports dropped by -38,1%.
Aggregate domestic new vehicle sales stand at 44,081 units, showing a decline of 1,889 units, compared to the 45,970 vehicles sold in September 2023.
Export sales also fell by 13,535 units, to 21,964 units in September 2024, from the 35,499 vehicles exported in September last year.
Toyota South Africa Motors sold 10,890 vehicles in September, boasting a 24.7% market share. TSAM sold 93,244 year to date and continues to trend ahead of Volkswagen.
China gaining momentum
But Chinese car manufacturers are quickly closing the gap, with brands like Omoda, Jaecoo and Haval gaining momentum and favour among motorists.
The release of the Omoda C5 and Jaecoo J7 have been warmly received, with the C9 set to roll off showrooms in October.
By the end of 2024, the Chery subsidiaries plan to set-up over 50 dealerships. Two in the North-West, Limpopo and the Eastern Cape, one Free State and Northern Cape, three in Mpumalanga, eight in KZN, nine in the Western Cape and 20 in Gauteng, according to Citizen News.
Motor Press
