Dealers News South Africa

Dealers show resilience in tough new vehicle market

While new vehicle sales in August showed a decline of 2.5% year-on-year, the performance of the industry has remained relatively flat from a year-to-date perspective at -0.6% over the first eight months of 2018.
Dealers show resilience in tough new vehicle market

Of the 47,964 total industry sales last month, 66% went to the passenger vehicle segment which is down 2.2% year-on-year and is flat year-to-date according to data released by the National Association of Automobile Manufacturers of South Africa (Naamsa).

Top-10 best-selling passenger vehicles
VW Polo2993
VW Polo Vivo1900
KIA Picanto1071
Hyundai Grand i101020
Toyota Etios900
Toyota Fortuner888
Toyota Yaris884
Toyota Corolla Quest845
Renault Kwid767
Ford Figo732

Light commercials, which contributed 29% of total sales, are down 5.8% year-on-year and 2.5% year-to-date. The commercial segment comprising buses, medium, heavy and extra-heavy vehicles made up the final 5%, and is up 16% year-on-year and 2.1% year-to-date.

“Despite perpetual pressure on the economy this year with total industry sales remaining subdued, the dealer channel has been resilient showing 2.4% year-to-date growth.” said Ghana Msibi, WesBank’s executive head for sales and marketing.

Top-10 best-selling light commercial vehicles
Toyota Hilux3366
Ford Ranger2535
Nissan NP2001634
Isuzu KB1542
Toyota Quantum1477
Nissan NP300905
Hyundai H100 Bakkie337
Mahindra Scorpio Pik-UP233
VW Caddy190
Nissan Hardbody187

“With four months remaining in 2018, WesBank’s forecast of 3% growth is still possible. However, if the deterioration of the rand to foreign currencies continues as we’ve seen in August, consumers could feel more of a pinch when buying new cars going forward.”

Rentals grew by 1.6% year-on-year in August, but remained 7.6% down when compared to the first eight months of last year which saw the highest rental sales ever recorded.

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