SA's automotive industry shows immense resilience during severe disruptions

9 May 2022

According to Mark Dommisse, chairperson of the National Automobile Dealers' Association (Nada), the South African motor industry continues to astound not only industry commentators on the outside but also those people working inside the industry, with tremendous ability to overcome setbacks and disruptions. Dommisse commented on the retail sales returns for April which were distributed by the National Association of Automobile Manufacturers of South Africa (Naamsa), the Automotive Business Council.

Mark Dommisse, chairperson of Nada | image supplied

“Sales in April 2022 exceeded those in April 2021 by 4.3% against all odds when one considers the effects of the massive flooding and subsequent disruptions in KwaZulu-Natal, fewer selling days due to the many public holidays, as well as school holidays and the ongoing restricted vehicle supply because of the worldwide shortage of semiconductors,” said Dommisse.

The trading environment in South Africa also continues to be affected by the Covid-19 pandemic which results in many component and vehicle manufacturing factories all over the world being shut down intermittently, as well as the negative effects of the conflict in Ukraine on component supply.

“Not only did total sales of 37,107 units reflect an increase of 1,516 units from April 2021, but export sales managed to grow by 16% despite major problems with road transport and severe disruptions at the port of Durban.

“It was heartening to see that 32 809 units, or 88.4% of new vehicle sales, moved through the dealer retail channel during the month, while the rental industry played a key role in contributing 9.1% to total sales and a significant 12.5% to the passenger car market,” added Dommisse.