South Africa’s new-vehicle market ended the year on a positive note, with sales in December 2022 growing 16.2%. Here’s what you need to know, including a look at the country’s best-selling vehicles and most popular brands…
In December 2022, South Africa’s new-vehicle industry registered its twelfth consecutive month of year-on-year sales growth, capping a year defined by its steady recovery to just short of pre-pandemic levels. The final month of 2022 saw total new-vehicle sales in the country grow an encouraging 16.2% year on year to 41 783 units, according to Naamsa.
Though this figure is down around 15% compared with November 2022’s effort of 49 413 registrations, it nevertheless represents a sound showing in a month traditionally shortened by public holidays and year-end closures (and thus fewer trading days).
Out of the total reported industry sales of 41 783 vehicles, an estimated 37 479 units (or 89.7%) represented dealer sales, while 7.3% went to the vehicle-rental industry, 1.5% to government and another 1.5% to industry corporate fleets. Both the new passenger-vehicle and light-commercial vehicle markets reflected year-on-year increases, with the former growing 15.4% to 28 793 units and the latter 16.1% to 10 438 units. Meanwhile, December 2022’s export sales grew 24.2% year on year to 26 302 units.
For the record, South Africa’s new-vehicle sales for the full year of 2022 recovered by 13.9% to 528 963 units, though this was still 1.4% below the pre-pandemic 536 612 units sold in 2019.
Gary McCraw, Director of the National Automobile Dealers’ Association (NADA), said the sustained growth in SA’s new-vehicle sales “continues to confound forecasters”, before describing December as a “bumper” month.
“We are particularly pleased that the retail sales channel was responsible for delivering 37 479 units or 89.7% of the total vehicles sold in December, which is excellent for the health of these dealers, who are still recovering from the lengthy COVID-19 lockdowns,” McCraw explained.
New vehicle sales summary for December 2022
- Aggregate new-vehicle sales of 41 783 units increased by 16.2% (5 839 units) compared to December 2021.
- New passenger-vehicle sales of 28 793 units increased by 15.4% (3 840 units) compared to December 2021.
- New light-commercial vehicle sales of 10 438 units increased by 16.1% (1 449 units) compared to December 2021.
- Export sales of 26 302 units increased by 24.2% (5 130 units) compared to December 2021.
10 best-selling car brands in South Africa for December 2022
There were no surprises at the very top of the pile, with Toyota (11 250 units) again way out in front, more than double the effort of the again second-placed Volkswagen Group (5 331 units). Suzuki, meanwhile, held steady in third place with 3 058 registrations, finishing what has been an incredibly strong year for the Japanese firm’s local division.
Meanwhile, Hyundai moved up a place to fourth, pushing Nissan down one to fifth. Ford managed to hang onto sixth spot, while Renault climbed three places to seventh (and was the only brand in the top 10 to improve on its November showing). Chinese brand Haval thus fell one to eighth, with Kia again securing ninth and Isuzu sinking two positions to tenth. For the record, Chery found itself in twelfth place, with 1 359 units sold in December 2022.
1. Toyota – 11 250 units
2. Volkswagen Group – 5 331 units
3. Suzuki – 3 058 units
4. Hyundai – 2 770 units
5. Nissan – 2 144 units
6. Ford – 1 948 units
7. Renault – 1 868 units
8. Haval – 1 735 units
9. Kia – 1 650 units
10. Isuzu – 1 607 units
10 best-selling vehicles in South Africa for December 2022
No prizes for guessing the Toyota Hilux again topped the best-selling vehicle charts, with 2 556 examples of the locally produced bakkie sold across the country in the final month of the year. The likewise Prospecton-built Corolla Cross (1 834 units) found itself in a comfortable second place once more, while the Hi-Ace (1 539 units) moved up one to third, resulting in an all-Toyota podium in December 2022.
Amid its switch to a new generation, the Ford Ranger (1 495 units) moved down a position to fourth, while Volkswagen’s Kariega-produced twins, the Polo Vivo (1 421 units) and Polo hatchback (1 365 units), each climbed a place to fifth and sixth, respectively. The Struandale-manufactured Isuzu D-Max (1 183 units) was up one to seventh and the Toyota Starlet (1 036 units) two to eighth, with the latter the highest-placing imported model.
The Toyota Urban Cruiser (945 units) retained ninth, while the Chery Tiggo 4 Pro made its first appearance in the top 10, with 857 units registered in the month. Despite taking fifth place in November, sales of the Suzuki Swift interestingly more than halved month on month to 806 units. Other vehicles just outside the top 10 in December 2022 included the Hyundai Grand i10 (780 units), Renault Kwid (780 units), Nissan Magnite (771 units), Haval Jolion (734 units) and Nissan NP200 (718 units).
1. Toyota Hilux – 2 556 units
2. Toyota Corolla Cross – 1 834 units
3. Toyota Hi-Ace – 1 539 units
4. Ford Ranger – 1 495 units
5. Volkswagen Polo Vivo – 1 421 units
6. Volkswagen Polo Hatch – 1 365 units
7. Isuzu D-Max – 1 183 units
8. Toyota Starlet – 1 036 units
9. Toyota Urban Cruiser – 945 units
10. Chery Tiggo 4 Pro – 857 units
Top 10 vehicles exported from South Africa in December 2022
In December 2022, the Ford Ranger reclaimed the top export spot (having placed third the previous month), with 5 553 units shipped from its Silverton facility. The Volkswagen Polo hatchback (5 447 units) wasn’t too far behind in second, with the Toyota Hilux (3 152 units) likewise dropping a spot, to third. With the Munich-based firm reporting detailed sales figures to Naamsa again in December, the Rosslyn-built BMW X3 (1 748 units) managed to crack fourth.
The Nissan Navara, Isuzu D-Max, Nissan NP200, Toyota Corolla Quest, Toyota Fortuner and Toyota Corolla Cross made up the numbers. It’s also worth noting Mercedes-Benz did not submit detailed figures to Naamsa, so it’s not clear how many new C-Class sedan units were exported from SA last month. For the record, however, Naamsa’s estimate stands a whopping 9 405 units.
1. Ford Ranger – 5 553 units
2. Volkswagen Polo (hatch) – 5 447 units
3. Toyota Hilux – 3 152 units
4. BMW X3 – 1 748 units
5. Nissan Navara – 328 units
6. Isuzu D-Max – 188 units
7. Nissan NP200 – 94 units
8. Toyota Corolla Quest – 52 units
9. Toyota Fortuner – 39 units
10. Toyota Corolla Cross – 16 units
Sales outlook
So, now that 2022 has come and gone, what’s next for South Africa’s new-vehicle market? Well, Naamsa points to the fact the country’s consumer price inflation reached a 13-year high in July 2022, with the South African Reserve Bank raising the interest rate seven consecutive times since November 2021 to its highest level since 2016. It also notes the loftier stages of load-shedding “seemed to have an amplified negative impact” on the South African economy as a whole.
However, the organisation believes the domestic new-vehicle market’s performance will “remain resilient despite weakening domestic economic indicators and a deteriorating global growth outlook”. Naamsa’s concerns include global stagflation, the continued economic impact and disruption of supply chains resulting from the Russia-Ukraine war, and the current pace of tighter monetary policy in major markets. These factors all point to the possibility of a global recession.
In addition, Gross Domestic Product (GDP) growth in South Africa continues to be adjusted downwards and is now expected to be as low as 1.1% for 2023. In view of the close correlation between new-vehicle sales and the GDP growth rate, Naamsa predicts single-digit growth in new-vehicle sales for 2023 as the market “returns to pre-pandemic levels in sales and exports”.
NADA’s McCraw largely echoed Naamsa’s prediction that growth would continue in 2023, though “maybe not at the rate anticipated previously”. He noted many of the factors that “hobbled the motor industry in 2022” would likely still be encountered in 2023.
“The South African retail motor industry has had to face challenges for several years now and [is] proving very resilient and innovative in keeping sales volumes running at a reasonable rate,” concluded McCraw.
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