South Africa’s new-vehicle sales grew an encouraging 7.6% year on year in June 2022, while export figures increased as well. Here’s everything you need to know, including the market’s best sellers…
Despite still facing a variety of challenges, the new-vehicle market in South Africa put in an encouraging performance in June 2022, with aggregate domestic sales growing 7.6% year on year to 41 019 units (a month-on-month increase over May 2022 as well). The export market, meanwhile, enjoyed a healthy 18% year-on-year improvement to 33 054 units in June 2022.
Naamsa describes the figures as “inspiring”, considering the “ever-increasing challenging market conditions”. In the end, the new passenger-vehicle market contributed 29 545 units (up 20.6%) to June 2022’s total, with the rental industry accounting for 11.2% of those sales.
However, the light-commercial vehicle (LCV) segment saw a year-on-year drop of 20.8%, finishing the month on 8 877 units. Much of that fall, of course, could be attributed to the fact Toyota was not able to build a single Hilux or Hi-Ace at its Prospecton facility in June, as its extensive mop-up operations continued after April’s floods.
“Passenger car exports performed well during the month, but LCV exports lagged due to the knock-on effects of the KwaZulu-Natal floods as well as the ongoing shortage of semi-conductors impacting on vehicle production,” says Naamsa.
WesBank, meanwhile, points out the figures “will have brought some reassurance to the market after more-depressed April and May sales, providing stronger growth year-on-year”.
“The new vehicle market remains volatile for many reasons, most of these beyond the control of manufacturers,” says Lebogang Gaoaketse, head of marketing and Communications at WesBank.
“There are well-known pandemic-related consequences that continue to impact market performance. Additionally, broader challenges facing the country over the past few months have compounded the recovery of new vehicle sales. The market is unpredictable; suffice to say that it appears demand remains higher than the market is able to deliver,” Gaoaketse adds.
New vehicle sales summary for June 2022
- Aggregate new-vehicle sales of 41 019 units increased by 7.6% (2 888 units) compared to June 2021.
- New passenger-vehicle sales of 29 545 units increased by 20.6% (5 048 units) compared to June 2021.
- New light-commercial vehicle sales of 8 877 units decreased by 20.8% (-2 329 units) compared to June 2021.
- Export sales of 33 054 units increased by 18% (5 044 units) compared to June 2021.
10 best-selling car brands in South Africa for June 2022
Despite Toyota’s Prospecton factory again remaining largely shuttered through June thanks to the effects of the aforementioned KZN floods (with only the Hino assembly line returning to production), the Japanese firm managed to keep its nose well ahead of all challengers, with the 7 439 units it registered during the month proving more than enough to keep the Volkswagen Group (5 627 units) in second.
Suzuki, meanwhile, retained third with yet another record sales month, this time registering a new high of 4 622 units. Interestingly, there was only one position change in the top 10 compared with May 2022, with alliance partners Nissan and Renault swapping spots.
1. Toyota – 7 439 units
2. Volkswagen Group – 5 627 units
3. Suzuki – 4 622 units
4. Hyundai – 2 945 units
5. Ford – 2 396 units
6. Nissan – 2 370 units
7. Renault – 2 332 units
8. Kia – 2 091 units
9. Haval – 1 861 units
10. Isuzu – 1 715 units
10 best-selling vehicles in South Africa for June 2022
That’s two months on the trot for the Suzuki Swift! Yes, the Indian-built hatchback — which benefited from 675 sales to the rental industry — was again South Africa’s best-selling vehicle overall, with a whopping 1 925 units (up 161 units on its previous best effort achieved in May) registered. Toyota’s Suzuki-built Urban Cruiser climbed six spots to claim a strong second, with the Kariega-built Volkswagen Polo Vivo up one to third and the Silverton-produced Ford Ranger down two to fourth.
The refreshed Toyota Starlet rocketed back up the charts to grab fifth with 1 574 units sold (its Suzuki Baleno twin settled for 340 units, for the record), while the Renault Kiger returned to the table just ahead of the Volkswagen T-Cross (970 units). With no Hilux units produced locally, the Japanese bakkie fell out of the top 10, though still returned a total of 969 units.
1. Suzuki Swift – 1 925 units
2. Toyota Urban Cruiser – 1 785 units
3. Volkswagen Polo Vivo – 1 619 units
4. Ford Ranger – 1 601 units
5. Toyota Starlet – 1 574 units
6. Volkswagen Polo (hatch) – 1 461 units
7. Isuzu D-Max – 1 280 units
8. Nissan NP200 – 1 249 units
9. Renault Kiger – 1 016 units
10. Volkswagen T-Cross – 970 units
Top 5 vehicles exported from South Africa in June 2022
Volkswagen enjoyed a particularly strong month in the export market, with more than 10 000 examples of its Polo hatchback (including the GTI, which is built only in South Africa) leaving our shores during June. The Ford Ranger likewise saw a hefty month-on-month increase, with more than 8 500 units shipped overseas.
Interestingly, BMW Group South Africa reported individual model figures for the first time in a while, telling Naamsa 5 153 units of its X3 were exported last month. We should point out, of course, Mercedes-Benz did not submit detailed figures, so it’s unclear how many new C-Class sedan units were exported from SA during this latest reporting period.
1. Volkswagen Polo (hatch) – 10 689 units
2. Ford Ranger – 8 563 units
3. BMW X3 – 5 153 units
4. Isuzu D-Max – 480 units
5. Toyota Hilux – 65 units
Sales outlook
So, what does the short-term future look like for South Africa’s new-vehicle market? Well, Naamsa warns that consumers will in the next few months “start to feel the pinch of rising food and fuel prices”. Climbing interest rates and what Naamsa terms the “spillover effect of reduced disposable income” will likely also result in lower demand on the new-vehicle market.
“Just emerging from COVID-19 and the impact of the devastating floods in KZN, Stage 6 load-shedding will cost the South African economy dearly,” adds the organisation, before pointing out the ongoing war in Ukraine, broader supply-chain disruptions and the risk of stagflation will hamper global growth and ultimately “weigh in on the domestic industry’s export potential”.
WesBank’s Gaoaketse, meanwhile, says though there is reason to “celebrate” a recovery of new vehicle sales in the first six months of 2022, this performance “must be considered within the context of more stringent COVID-19 regulations during the first half of last year”.
“Based on a similar performance during the second half of the year, it is possible to see a South African new vehicle market exceed 500 000 units this year,” he concludes.
