South Africa’s new-vehicle sales for July 2022 reflect what appears to be a healthy year-on-year increase, though off an admittedly low base. Here’s what you need to know, including SA’s best-selling car brands and models…
New-vehicle sales in South Africa for July 2022 increased 30.9% year on year to 43 593 units, representing the fourth consecutive month of growth for the industry. However, as Naamsa points out, this came off a low base considering where the market was a year ago, dealing with disruptions caused by unrest in KwaZulu-Natal, a cyber-attack on Transnet operations and the adjusted COVID-19 Level 4 lockdown restrictions.
Still, July 2022’s total was up slightly on the previous month’s tally, which is certainly encouraging. Overall, out of the 43 593 vehicles registered, an estimated 83.6% represented dealer sales, with 10.4% coming courtesy of the rental industry. The new passenger-car market finished on 31 455 units, with the aforementioned rental channel accounting for 13.2% of these sales.
However, domestic sales of new light-commercial vehicles, bakkies and mini-buses fell 6.9% to 9 547 units. Exports, meanwhile, jumped 177.7% year on year to 31 242 units, pushing the year-to-date figure into positive territory for the first time in 2022 (2.9% ahead of the corresponding period in 2021).
WesBank echoed Naamsa’s heed to view the latest market figures with July 2021’s KZN unrest and COVID-19 lockdown restrictions firmly in mind, describing year-on-year comparisons as “skewed”.
“It would be easy to get over-excited about July sales when looking just at the numbers. However, the context of July last year is critical to appreciating the slow and steady growth being experienced in the market,” said Lebogang Gaoaketse, head of marketing and communications at WesBank.
New vehicle sales summary for July 2022
- Aggregate new-vehicle sales of 43 593 units increased by 30.9% (10 281 units) compared to July 2021.
- New passenger-vehicle sales of 31 455 units increased by 50.2% (10 517 units) compared to July 2021.
- New light-commercial vehicle sales of 9 547 units decreased by 6.9% (-710 units) compared to July 2021.
- Export sales of 31 242 units increased by 177.7% (19 990 units) compared to July 2021.
10 best-selling car brands in South Africa for July 2022
The new Taigo (528 units) helped VW grow its monthly tally past the 6 000-unit mark.
Although most assembly lines at Toyota’s flood-damaged Prospecton plant finally started moving again towards the end of July 2022, the gradual return to production would have had virtually no impact on sales for the month (full capacity is expected to be reached only in September, after all). That said, the Japanese brand again managed to hold its title of SA’s best-selling automaker, registering 7 110 units in July thanks largely to the performance of its imported models.
The Volkswagen Group (6 204 units) was again second, though closed the gap considerably compared with June. Suzuki held steady in third place with yet another record showing, this time registering 4 734 units (up on its previous best of 4 622 units achieved in June). Meanwhile, Nissan (2 625 units) climbed one place to fifth and Renault (2 552 units) one spot to sixth, forcing Ford (2 473 units) down two to seventh. The BMW Group entered the top 10 (though its figure is technically an estimate), meaning Haval fell from the official table in July 2022. Interestingly, Chery started reporting its sales statistics to Naamsa in July, with its final tally of 1 262 units enough for it to rank 13th.
1. Toyota – 7 110 units
2. Volkswagen Group – 6 204 units
3. Suzuki – 4 734 units
4. Hyundai – 2 965 units
5. Nissan – 2 625 units
6. Renault – 2 552 units
7. Ford – 2 473 units
8. Kia – 2 087 units
9. Isuzu – 1 951 units
10. BMW Group – 1 512 units
10 best-selling vehicles in South Africa for July 2022
Demand for the Ford Ranger remains strong, despite a new model being close.
With the Toyota Hilux (1 012 units) having to settle for tenth place, South Africa crowned a new best-selling vehicle for July 2022. Yes, the Suzuki-built Toyota Urban Cruiser (1 854 units) grabbed first just ahead of the Ford Ranger (1 838 units), with the likewise locally produced Volkswagen Polo Vivo (1 820 units) close behind in third.
The Isuzu D-Max (1 602 units) climbed three places to seize fourth, while the Suzuki Swift fell from June 2022’s first place to fifth with a still-impressive tally of 1 521 registrations. The Kariega-built Volkswagen Polo (1 166 units), meanwhile, found itself in unfamiliar territory all the way down in eighth.
1. Toyota Urban Cruiser – 1 854 units
2. Ford Ranger – 1 838 units
3. Volkswagen Polo Vivo – 1 820 units
4. Isuzu D-Max – 1 602 units
5. Suzuki Swift – 1 521 units
6. Toyota Starlet – 1 264 units
7. Nissan NP200 – 1 213 units
8. Volkswagen Polo (hatch) – 1 166 units
9. Renault Kiger – 1 099 units
10. Toyota Hilux – 1 012 units
Top 5 vehicles exported from South Africa in July 2022
As many as 11 526 units of the Polo were exported from VW’s Kariega facility in July 2022.
Although the Polo hatchback didn’t have its best sales month in South Africa, the VW-badged supermini triumphed by quite some margin in the export market, with a whopping 11 526 examples shipped from our shores. The Ford Ranger (6 587 units) was again second, while the Nissan Navara (479 units), Isuzu D-Max (421 units) and Nissan NP200 (81 units) made up the numbers. Just three examples of the Toyota Hilux were exported in July.
As always, we should point out BMW and Mercedes-Benz did not submit detailed figures, so it’s unclear exactly how many new X3 and C-Class sedan units were exported from SA during the reporting period. For the record, however, Naamsa’s estimates stand at 3 700 units and 8 147 units, respectively.
1. Volkswagen Polo (hatch) – 11 526 units
2. Ford Ranger – 6 587 units
3. Nissan Navara – 479 units
4. Isuzu D-Max – 421 units
5. Nissan NP200 – 81 units
Sales outlook
What’s next for the South African new-vehicle market? Well, Naamsa warns that the South African Reserve Bank’s recent 75 basis point interest-rate hike – the biggest since September 2002 and the fifth increase since November 2021 – will “impact consumer and business sentiment negatively”, and “consequently the new vehicle market”, too. This will likely be compounded by further interest-rate increases expected for the remainder of the year.
WesBank’s Gaoaketse likewise cautions that “the significant increase” in interest rates may dampen August sales as “new deals confront an affordability challenge or consumers simply delay purchase decisions”. However, he maintains interest rates are still “relatively low”, meaning a new-vehicle purchase will remain an “appealing financial opportunity” for some.
On the exports front, Naamsa points out global economic growth prospects “have been revised downwards” in recent times. This includes significantly weaker demand in Europe, which is the South African automotive industry’s largest export region. Still, as mentioned above, the year-to-date export figure is currently 2.9% in the positive.
