South Africa’s new-vehicle industry put in a reassuring performance in October 2022, despite fresh headwinds. Here’s everything you need to know, including the most popular brands and the best-selling vehicles…
In October 2022, South Africa’s new-vehicle market registered another month of year-on-year growth, with total sales increasing 11.4% to 45 966 units. Note, however, this figure is 3.8% lower than September 2022’s tally.
According to Naamsa, the market’s performance was a “reassuring” one considering “further headwinds” such as the “logistical disruptions caused by the Transnet strike”. Still, the organisation points out the pace of recovery has eased to 13.1% compared with the corresponding period in 2021.
In October, out of the total reported sales of 45 966 units, an estimated 37 983 units (or 82.6%) represented dealer sales, with 13.1% coming courtesy of the vehicle rental industry, 2.4% from government and 1.9% from industry corporate fleets. The new passenger-vehicle market came in at 30 597 units (up 10.4% year on year), again ably supported by the rental industry, which accounted for a “solid” 17.4% of these sales during the month. Meanwhile, 12 738 units were registered in the sector comprising light-commercial vehicles, bakkies and mini-buses, representing a 14.3% improvement compared with October 2021.
Lebogang Gaoaketse, Head of Marketing and Communications at WesBank, says though the market’s performance is indeed “reassuring” in isolation, it needs to be considered in terms of the performance for the rest of 2022 and the easing off of market activity year to date.
“The good news is that sales have breached the 400 000-mark by some margin and that a new-vehicle market of over 500 000 units for the year is definitely possible. In perspective, the year-to-date growth compared to last year is 50 713 units, or a good full month’s sales extra this year, which is good news for the industry and dealers alike,” explains Gaoaketse.
According to the National Automobile Dealer Association (NADA), the sales figures for all segments in October 2022 were “encouraging”.
“The Transnet strike, which played havoc with logistics nationally, particularly at the ports, could not stem the ongoing upswing in the sale of new vehicles in South Africa in 2022,” says NADA Chairperson Mark Dommisse.
“The market is showing unbelievable resilience in the face of negative economic pressures. We, at NADA, are immensely proud of the way our members keep astounding market commentators with their sales in a market which has been rocked by floods, strikes, rising interest rates, load-shedding, high fuel prices, a struggling economy and stock shortages. Their performance is admirable.”
New vehicle sales summary for October 2022
- Aggregate new-vehicle sales of 45 966 units increased by 11.4% (4 715 units) compared to October 2021.
- New passenger-vehicle sales of 30 597 units increased by 10.4% (2 881 units) compared to October 2021.
- New light-commercial vehicle sales of 12 738 units increased by 14.3% (1 590 units) compared to October 2021.
- Export sales of 29 508 units increased by 16.1% (4 101 units) compared to October 2021.
10 best-selling car brands in South Africa for October 2022
The Magnite (735 units) helped Nissan climb to fourth place on the list of best-selling brands.
While Toyota hasn’t quite recovered to its pre-flood sales figures, it’s not far off. In fact, with 12 574 units registered across the land in October 2022, the Japanese firm grabbed a hefty market share of 27.3%. Despite a month-on-month drop, the Volkswagen Group (4 904 units) retained second place, just ahead of Suzuki (4 112 units).
Meanwhile, Nissan (3 011 units) climbed one spot to fourth, while Haval (2 602 units) rocketed back into the top 10 to claim a strong sixth place. Ford (2 458 units) was up one to seventh, while Renault (2 011 units) fell three to ninth. Chery ended October 2022 with 1 229 registrations, which saw it just miss out on retaining a place in the top 10.
1. Toyota – 12 574 units
2. Volkswagen Group – 4 904 units
3. Suzuki – 4 112 units
4. Nissan – 3011 units
5. Hyundai – 2 703 units
6. Haval – 2 602 units
7. Ford – 2 458 units
8. Isuzu – 2 187 units
9. Renault – 2 011 units
10. Kia – 1 780 units
10 best-selling vehicles in South Africa for October 2022
The Haval H6 range (which now includes a hybrid) made it into the top 10 in October 2022.
Another month, another best-selling vehicle title for the Prospecton-built Toyota Hilux, which ended October 2022 on a heady 3 336 units. The Toyota brand dominated the podium, with the likewise locally produced Corolla Cross (2 014 units) climbing five spots to second and the imported Urban Cruiser (1 820 units) one to third.
The outgoing Ford Ranger (1 807 units) moved up one place to fourth, sneaking its nose ahead of the fifth-placed Isuzu D-Max (1 802 units). The Suzuki Swift (1 639 units) fought its way back up the table to sixth, while the Volkswagen Polo Vivo (1 583 units) dropped five places to seventh. Recently bolstered by the launch of a hybrid derivative, the Haval H6 (956 units) grabbed the final spot on the table, meaning the Volkswagen Polo hatch – which ended October on 809 units – was unceremoniously booted from the list.
1. Toyota Hilux – 3 336 units
2. Toyota Corolla Cross – 2 014 units
3. Toyota Urban Cruiser – 1 820 units
4. Ford Ranger – 1 807 units
5. Isuzu D-Max – 1 802 units
6. Suzuki Swift – 1 639 units
7. Volkswagen Polo Vivo – 1 583 units
8. Toyota Hi-Ace – 1 239 units
9. Nissan NP200 – 1 096 units
10. Haval H6 – 956 units
Top 8 vehicles exported from South Africa in October 2022
The Ford Ranger again led the industry’s export charge in October 2022.
Ford managed to retain top spot on the list of exporters, with 6 312 examples of the Ranger being shipped overseas from Silverton in October 2022. Volkswagen’s Kariega-built Polo hatchback (5 331 units) was second, while the Toyota Hilux (4 338 units) settled into third place. The Isuzu D-Max, Nissan Navara, Toyota Fortuner, Nissan NP200 and Toyota Corolla Cross made up the numbers.
As always, it’s worth noting BMW and Mercedes-Benz did not submit detailed figures, so it’s not clear exactly how many new X3 and C-Class sedan units were exported from South Africa in October 2022. For the record, however, Naamsa’s estimates stand at 4 400 units and 8 075 units, respectively.
1. Ford Ranger – 6 312 units
2. Volkswagen Polo (hatch) – 5 331 units
3. Toyota Hilux – 4 338 units
4. Isuzu D-Max – 344 units
5. Nissan Navara – 262 units
6. Toyota Fortuner – 92 units
7. Nissan NP200 – 57 units
8. Toyota Corolla Cross – 45 units
Sales outlook
So, what’s next for South Africa’s new-vehicle market? Well, Naamsa warns growth prospects for the balance of the year “remain constrained” as higher interest rates and consequent higher debt servicing costs “weigh on disposable income”. In addition, the organisation points to the “persistence of load-shedding” and the lack of hope the electricity crisis will be alleviated over the near term as further headwinds.
WesBank’s Gaoaketse also touched on the impending impact of interest-rate hikes.
“With the rise in interest rates last month and the economic outlook provided by the mid-term budget, South African consumers are faced with a balancing act of affordability versus a growing need to replace their vehicles, a decision largely delayed over the past two years given the pandemic. It provides a cauldron of opportunity for the motor industry to meet the needs of motorists,” says Gaoaketse.
Meanwhile, NADA’s Dommisse made comment on industry rumours of upcoming vehicle price hikes.
“There has been discussion about impending drastic vehicle price rises, but this was discounted, to a degree, by several representatives of major OEMs speaking at South African Auto Week at the Kyalami Conference Centre last week, who said they believed price rises would stay below the consumer price index,” Dommisse points out.
“We are, however, still expecting increases in the first quarter of 2023, which could slow sales and influence OEMs to incentivise more heavily as they fight for market share. We believe used vehicle pricing will become more realistic as stock levels grow and write-backs become more commonplace,” he concludes.
Switching to the export market, Naamsa says despite “weaker global demand” due to major advanced economies around the world entering a “new era of persistent and structurally higher inflation”, vehicle exports remain on track to reach a level of well over 300 000 units in 2022.
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