South Africa’s new-vehicle sales for August 2022 proved “remarkably buoyant” despite tough trading conditions. Here’s everything you need to know, including SA’s best-selling car brands and models…
In August 2022, new-vehicle sales in South Africa increased an encouraging 14.2% year on year to 47 420 units, representing the fifth consecutive month of growth (as well as a further improvement over July’s figures) and the second-best month of 2022 thus far. This comes despite the fact the industry is still facing a number of obstacles. Indeed, as Naamsa points out, the local market’s performance was a “remarkably buoyant” one in August considering the “increasingly challenging economic conditions” faced in South Africa.
Out of the total reported industry sales of 47 420 units, an estimated 40 889 units (or 86.2%) represented dealer sales, while the rental industry accounted for 8.3%, corporate fleets around 4.3% and sales to government about 1.2%. The new passenger-car market ended the month on 31 269 units (a year-on-year gain of 14.6%), with plenty of support from the rental industry. Domestic sales of new light-commercial vehicles (LCVs), bakkies and mini-buses, meanwhile, also increased (in this case, by 13.1%) to 13 281 units.
A healthy chunk of that growth in both the passenger-car and LCV segments can likely be attributed to the fact production at Toyota’s Prospecton facility has ramped back up considerably after the factory was forced to shut down owing to flood damage sustained back in mid-April. Yes, the Japanese automaker is again building SA favourites such as the Hilux, Corolla Cross and Hi-Ace, as reflected in the model sales figures below, though still has what it describes as an “extensive backlog” of orders to clear.
According to WesBank, the latest sales figures indicate “some form of stability” is returning to the new-vehicle market.
“It is interesting to note the correlation in market performance this year against 2021. Last year, August put in the second-best selling month at the time; March 2021 being the best sales month. Coincidentally, March 2022 sales have so far been this year’s best sales month,” says Lebogang Gaoaketse, Head of Marketing and Communications at WesBank. “August sales are also reassuring in the sense that the volume increase comes off that relatively high base. Doing so in the face of the hike in interest rates during July appears not to have dampened any market demand.”
Meanwhile, August 2022 exports finished on 28 662 units, reflecting a robust 57% year-on-year improvement. Year to date, we’re happy to report vehicle exports are 5.8% ahead of the corresponding period 2021.
New vehicle sales summary for August 2022
- Aggregate new-vehicle sales of 47 420 units increased by 14.2% (5 887 units) compared to August 2021.
- New passenger-vehicle sales of 31 269 units increased by 14.6% (3 992 units) compared to August 2021.
- New light-commercial vehicle sales of 13 281 units increased by 13.1% (1 536 units) compared to August 2021.
- Export sales of 28 662 units increased by 57% (10 402 units) compared to August 2021.
10 best-selling car brands in South Africa for August 2022
Rapidly putting the KwaZulu-Natal flooding disaster behind it, Toyota managed to soar back into five figures in August, improving its July tally by more than 4 000 units to end on an impressive 11 138 registrations. The Japanese automaker thus opened a substantial lead on the second-placed Volkswagen Group (6 693 units), even though its German rival was slightly ahead in the passenger-car space. With 4 164 units sold, Suzuki again placed third overall, though for the first time in 2022 failed to register a record sales month.
Other changes in the top 10 included Isuzu (2 122 units) climbing one place to eighth and Kia (2 035 units) falling one spot to ninth. In addition, Haval returned to the table, grabbing the final position with a figure of 1 797 units (and shoving the BMW Group out of the top 10). For the record, Chery came in at 12th, with its 1 320 registrations putting it just behind the 11th-placed Mahindra.
1. Toyota – 11 138 units
2. Volkswagen Group – 6 693 units
3. Suzuki – 4 164 units
4. Hyundai – 3 129 units
5. Nissan – 2 644 units
6. Renault – 2 350 units
7. Ford – 2 341 units
8. Isuzu – 2 122 units
9. Kia – 2 035 units
10. Haval – 1 797 units
10 best-selling vehicles in South Africa for August 2022
From 10th to first! With the assembly line at Prospecton again churning out Toyota Hilux units, the Japanese bakkie returned to the top of the table, with its 3 417 registrations easily enough to render it South Africa’s best-selling vehicle in August 2022. The likewise locally built Volkswagen Polo Vivo (2 359 units), meanwhile, also put in rather a strong showing, climbing one place to second.
The Toyota Urban Cruiser (1 905 units) and outgoing Ford Ranger (1 791 units) both dropped two places to third and fourth, respectively, while the Suzuki Swift (1 369 units) also fell two to seventh (remember, it was SA’s top-selling vehicle as recently as June 2022). The Volkswagen Polo hatchback (1 286 units) was again forced to settle for eighth, while the SA-built Toyota Corolla Cross (1 129 units, including the new GR-Sport) and Toyota Hi-Ace (1 008 units) returned to the table at the expense of the Indian-built Toyota Starlet and Renault Kiger. The Volkswagen T-Cross (1 000 units) just missed out on a top 10 finish.
1. Toyota Hilux – 3 417 units
2. Volkswagen Polo Vivo – 2 359 units
3. Toyota Urban Cruiser – 1 905 units
4. Ford Ranger – 1 791 units
5. Isuzu D-Max – 1 789 units
6. Nissan NP200 – 1 397 units
7. Suzuki Swift – 1 369 units
8. Volkswagen Polo (hatch) – 1 286 units
9. Toyota Corolla Cross – 1 129 units
10. Toyota Hi-Ace – 1 008 units
Top 5 vehicles exported from South Africa in August 2022
The Volkswagen Polo hatchback was again right at the very summit of the export table, with 9 129 units shipped from the Kariega factory in August (for the record, more than 100 000 examples of the facelifted model have already rolled off the line). The Silverton-produced Ford Ranger (6 910 units) was second once more, while the Toyota Hilux (3 069 units) returned to the podium, ahead of the Rosslyn-built Nissan Navara (539 units) and Struandale-manufactured Isuzu D-Max (342 units).
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 South Africa in August 2022. However, Naamsa’s estimates stand at 3 300 units and 4 998 units, respectively.
1. Volkswagen Polo (hatch) – 9 129 units
2. Ford Ranger – 6 910 units
3. Toyota Hilux – 3 069 units
4. Nissan Navara – 539 units
5. Isuzu D-Max – 342 units
Sales outlook
So, where to from here for South Africa’s new-vehicle market? Well, Naamsa warns things aren’t going to get any easier, thanks to obstacles that include “elevated inflation” and the “upward trend” in interest rates. That, of course, means consumers will continue to face an “affordability challenge”.
“Annual consumer inflation reached a 13-year high, increasing to 7.8% in July 2022 and further interest rate hikes are anticipated for the remainder of the year,” the organisation points out. Still, Naamsa is hopeful the rental industry will continue to support the new-vehicle market as it believes the tourism sector is “starting to stabilise”.
“The new-vehicle market’s performance for the year-to-date is still 13.8% ahead compared to the corresponding period 2021, but the pace of steady growth being experienced in the market is expected to slow down for the balance of the year,” the organisation adds.
Interestingly, despite further looming interest-rate increases, WesBank reports demand in the new-vehicle market continues to grow.
“Applications for finance continue to show a growing demand for vehicle replacement, with WesBank’s book showing strong double-digit growth being driven by applications for new vehicles,” says Gaoaketse.
“The appeal of the pre-owned market appears to be waning, likely due to price inflation and the increasingly limited availability of good stock. Where the pre-owned market has been offering affordability solutions for cost-conscious consumers, the average deal size on a used car has increased over 10% year-on-year, while the value of finance agreements on new vehicles over the same period is static,” Gaoaketse adds, predicting this will fuel the new-vehicle market as the replacement cycle comes under pressure.
In terms of vehicle exports, Naamsa says while the “deteriorating global growth outlook and tighter global financial conditions” will likely dampen prospects for vehicle exports (in particular to Europe due to the repercussions of the ongoing conflict between Russia and the Ukraine), further new locally manufactured model introductions are expected to “enhance” South Africa’s exports for the balance of the year.
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