Johannesburg - The South African motor industry continued its robust recovery in February, with new vehicle sales rising by 18.4%, versus the same month last year, to a total of 44 229 units. Export sales increased by 12.3% to 32 867 units, According to Naamsa.
The new passenger car market led the way with 29 563 sales, representing a year-on-year gain of 22.4%. Light commercial vehicles and bakkies grew by 9.4%, while the medium and heavy commercial vehicle segments saw respective growth of 7.5% and 23.5%.
84.9% of sales took place through dealerships, while the rental industry accounted for 10.1%, government sales 3.8% and corporate fleets 1.2%.
Toyota led the way with overall sales of 13 458 units, followed distantly by Volkswagen (6153 units), Suzuki (3240), Hyundai (3017), Nissan (2126) and Haval (2054).
But tougher times could lie ahead and the Automotive Business Council, Naamsa, is concerned about the escalating geo-political tensions due to Russia’s invasion of Ukraine.
“We don’t need another global economic disruption. We urgently urge all global leaders to work through the United Nations structures to find sustainable political solutions to the conflict in the region so that the people of Ukraine can avert human suffering, destruction to property and the demolition of some of their important economic infrastructure needed to sustain progress and development”, said Naamsa CEO, Mikel Mabasa.
On the upside, The growth-positive National Budget passed in February month provided some good news for business and consumers with a cut in corporate income tax, accommodating adjustments in personal income tax brackets and no hike in the fuel levy, Naamsa said. However, the March fuel price hike remains a huge concern.
According to WesBank marketing head Lebogang Gaoaketse, the situation could amplify the divide between consumer and business demand and the market’s already hampered ability to supply.
“This increasing amount of pent-up demand may only be balanced by affordability considerations thanks to increased running costs, and household incomes, which remain under pressure,” Gaoaketse said.
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