South Africa’s new-vehicle sales grew marginally year on year in July 2023. Here’s your comprehensive overview, including SA’s most popular automotive brands, best-selling cars and plenty more…
In July 2023, South Africa’s new-vehicle industry registered a marginal year-on-year gain of 1.3% to finish on 43 389 units. Though this performance marked the 3rd consecutive month of year-on-year growth, it also represented a month-on-month decline of 7.3%, compared with June 2023’s industry tally of 46 810 units.
According to Naamsa, out of the total reported industry sales of 43 389 vehicles, an estimated 81.8% represented sales via the dealership channel, while 14.1% were sales to the rental industry, 1.7% to government and 2.3% to industry corporate fleets.
At 12 666 units, the light-commercial vehicle segment (including bakkies) again provided much of the month’s momentum, with sales in that sector increasing an appreciable 32.6% compared to the corresponding period in 2022. The new passenger-vehicle market, however, registered a 9.7% year-on-year fall to end July 2023 on 27 839 units.
Meanwhile, there was plenty to cheer about in the export market, which recorded a year-on-year increase of 47.3% to 37 064 units. Of course, we should bear in mind this growth came off a relatively low base as Toyota’s production facility in Prospecton was still experiencing the devastating effects of the KwaZulu-Natal floods back in July 2022.
The National Automobile Dealers’ Association (NADA), meanwhile, said strong sales of commercial vehicles were reason to celebrate July’s sales figures, which were all in all “better than expected”.
“The fact that total vehicle sales are still showing growth is good news for the local motor industry and the economy in general, but what makes this performance in July special is that strong demand in most segments of the commercial-vehicle market is the reason for the growth,” commented Brandon Cohen, NADA’s recently appointed national chairperson.
“This indicates growing confidence in the economy by the business world, as most commercial vehicles are bought by businesses,” Cohen explained, before adding though total sales through the dealer channel were “rather disappointing”, the vehicle rental industry at least seemed to be “building confidence”.
New vehicle sales summary for July 2023
- Aggregate new-vehicle sales of 43 389 units increased by 1.3% (567 units) compared to July 2022.
- New passenger-vehicle sales of 27 839 units decreased by 9.7% (2 985 units) compared to July 2022.
- New light-commercial vehicle sales of 12 666 units increased by 32.6% (3 114 units) compared to July 2022.
- Export sales of 37 064 units increased by 47.3% (11 896 units) compared to July 2022.
10 best-selling automakers in South Africa in July 2023
Toyota was yet again top of the charts in South Africa in July 2023, though its tally (which, for the record, includes Lexus sales) fell 2 204 registrations month on month to a still-substantial 10 812 units. Once again, the Volkswagen Group (5 797 units) – comprising VW and Audi sales – placed 2nd, while Suzuki held steady in 3rd with 4 361 units.
Mid-table regulars Hyundai (2 878 units), Ford (2 500 units) and Nissan (2 308 units) remained in 4th, 5th and 6th position respectively, while Haval climbed 2 places to 7th, enjoying 2 030 registrations during the month. Isuzu (1 903 units) thus slipped a spot to 8th and Renault (1 707 units) dropped a place to 9th.
Finally, Chinese firm Chery broke into the top 10 at the expense of Kia (though the South Korean brand was a mere 3 sales behind), with 1 375 units registered in July 2023. This is the 1st time Chery has achieved an overall top-10 finish in South Africa since it starting reporting sales figures to Naamsa a year ago (though it is routinely a top-10 passenger vehicle brand).
While Kia (1 372 units) was relegated to 11th, Indian company Mahindra slotted in at 12th, finishing July 2023 with 929 registrations.
1. Toyota – 10 812 units
2. Volkswagen Group – 5 797 units
3. Suzuki – 4 361 units
4. Hyundai – 2 878 units
5. Ford – 2 500 units
6. Nissan – 2 308 units
7. Haval – 2 030 units
8. Isuzu – 1 903 units
9. Renault – 1 707 units
10. Chery – 1 375 units
10 best-selling vehicles in South Africa in July 2023
While it didn’t quite breach the 3 000-unit mark this time, the Toyota Hilux was nevertheless South Africa’s best-selling vehicle yet again, with 2 982 units of the Prospecton-produced bakkie registered around South Africa in July 2023. The Kariega-built Volkswagen Polo Vivo (2 177 units), meanwhile, climbed 2 places to grab 2nd spot, boosted by 692 sales to the rental industry.
The Silverton-manufactured Ford Ranger (2 089 units) held steady in 3rd to complete the podium, while the Suzuki Swift – the highest-ranked imported model in July 2023 – moved up 2 positions to 4th, with 1 809 units sold (865 of which were sales to the rental industry). That meant the locally built Toyota Corolla Cross (1 801 units) fell 3 places to 5th.
The Struandale-made Isuzu D-Max (1 542 units) dropped a position to 6th, while the Prospecton-produced Toyota Hi-Ace (1 395 units) clambered up 2 places to 7th. As 1 of just 2 imported models in the top 10, the Toyota Starlet (1 187 units) remained in 8th, with the Rosslyn-manufactured Nissan NP200 (1 041 units) gaining a spot month on month to finish 9th. The Volkswagen Polo hatchback returned to the table to snaffle 10th, though wasn’t quite able to reach 4 figures.
What about models that just missed out on making it into the top 10 in July 2023? Well, the Haval Jolion (833 units) was a mere 91 units behind the Polo hatchback, followed by the Hyundai Grand i10 (825 units), Nissan Magnite (798 units), Toyota Fortuner (730 units) and Chery Tiggo 4 Pro (693 units).
1. Toyota Hilux – 2 982 units
2. Volkswagen Polo Vivo – 2 177 units
3. Ford Ranger – 2 089 units
4. Suzuki Swift – 1 809 units
5. Toyota Corolla Cross – 1 801 units
6. Isuzu D-Max – 1 542 units
7. Toyota Hi-Ace – 1 395 units
8. Toyota Starlet – 1 187 units
9. Nissan NP200 – 1 041 units
10. Volkswagen Polo (hatch) – 924 units
Top 10 vehicles exported from South Africa in July 2023
That’s 3 months on the trot at the top for the Volkswagen Polo hatchback, with a whopping 10 326 examples sent overseas from the Kariega factory in the Eastern Cape. The Ford Ranger (7 686 units) bounced back to seize 2nd on the export charts, with the Toyota Hilux close behind in 3rd on 7 273 units.
As we’ve come to expect, the Isuzu D-Max, Nissan Navara, Toyota Fortuner, Nissan NP200, Toyota Corolla Cross and Toyota Corolla Quest made up the export numbers, though this time the KZN-assembled Mahindra Pik Up also joined the list.
We should, of course, 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 during the month (for the record, though, Naamsa’s estimates for July 2023 stood at 3 500 and 6 696 units, respectively).
1. Volkswagen Polo (hatch) – 10 326 units
2. Ford Ranger – 7 686 units
3. Toyota Hilux – 7 273 units
4. Isuzu D-Max – 641 units
5. Nissan Navara – 404 units
6. Toyota Fortuner – 100 units
7. Mahindra Pik Up – 77 units
8. Nissan NP200 – 71 units
9. Toyota Corolla Cross – 63 units
10. Toyota Corolla Quest – 1 unit
Vehicle-sales outlook in SA for remainder of 2023
So, what’s next for South Africa’s new-vehicle market? Well, Naamsa believes the fact the South African Reserve Bank (SARB) “paused interest rates” at 8.25% in July 2023 – after 10 consecutive hikes – will elicit a “sigh of relief” from new-vehicle buyers all around the country.
“The unchanged rates and improvements in inflation rates bodes well for the car market as the 2nd largest household investment cost for many South African consumers, considering the distressed borrowing patterns amongst households as debt service costs’ share of disposable income remains high at 8.4% on average,” says the industry body.
In addition, Naamsa points to the fact South Africa’s 2023 year-to-date new-vehicle sales figure of 309 359 units represents an increase of 4.4% compared to the same period last year. The 2023 year-to-date export figure of 209 900 units is up 10.0% year on year, a likewise encouraging statistic.
Though NADA’s Cohen says generally “better stock availability” and increased manufacturer support for “trade-ins and new-vehicle incentives” are certainly aiding the market’s positive performance, he notes many consumers are “opting for smaller and less expensive models” in a renewed buying-down trend.
“What is [also] concerning is that there is lots of activity on digital platforms and websites, but this is not translating into sales in the passenger space. This is likely due to the financial constraints consumers are facing,” Cohen concludes.
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