Despite a depressed economy and political uncertainty in South Africa, September 2017 was the fourth consecutive month that aggregate domestic new car sales recorded positive gains on local soil. Take a look at this new car sales summary for the details…
The new car market has made somewhat of a U-turn with positive results reflected during September 2017 with new passenger car sales and light commercial vehicle (LCV) sales showing strength. Exports also recorded strong gains and this trend is expected to continue in coming months. Aggregate new vehicle sales showed year-on-year growth of 7.0%.
Rudolf Mahoney, Head of Brand and Communication at WesBank commented that “This remarkable recovery in the new vehicle market is being made possible by superlative marketing incentives from manufacturers. Right now, new vehicle deals are just that much more attractive than buying used, and consumers are seeing the value.”
Furthermore, data from WesBank reveals that value for money in the new car market was a key driver in September’s positive results with average deal values declining. WesBank notes that the average new vehicle finance transaction in September was some 1.1% lower, which indicates that manufacturers are giving value back to the consumer. Sales through the dealer channel, where consumers are most active, reflected an increase of 6.3% during September 2017.
In the used car market, however, supply of quality used vehicles is ‘drying up’, resulting in continued price inflation. WesBank says that used vehicle finance deal values have risen by 8.4% year-on-year with no signs of slowing. In fact, in the last 3 months alone, this figure has jumped by 2.5%.
New car sales summary - September 2017
Aggregate new vehicle sales of 50 675 units up by 7.0% (3 318 units) compared with September 2016.
New car sales of 33 669 units up by 5.9% (1 868 units) compared with September 2016.
Light Commercial Vehicle (LCV) sales of 14 523 units up by 11.7% (1 520 units) compared with September 2016.
Exports sales of 36 359 units up by 11% (3 595 units) compared with September 2016.
Top 5 best-selling car brands in South Africa - September 2017
Toyota continues to dominate the local car market with Hilux, Corolla, Fortuner, Etios, Avanza and RAV4 being top sellers.
Toyota - 11 123 units with market share of 22%
Volkswagen - 8 012 units with market share of 15.8%
Ford - 6175 units with market share of 12.2%
Nissan - 5 098 units with a market share of 10.1%
Hyundai - 3 147 with a market share of 6.2%
Top 5 best-selling cars in South Africa
The Toyota Hilux is the best-selling vehicle in SA, out-selling its Ford Ranger rival by a considerable margin.
Toyota Hilux - 3 995 units
Volkswagen Polo Vivo - 2 942
Ford Ranger - 2 337 units
Volkswagen Polo - 2 324
Toyota Corolla/Auris/Quest - 1 845 units
New car sales outlook for 2017
The National Association of Automobile Manufacturers of South Africa (NAAMSA) predicts an overall year-on-year improvement of 1.5% for 2017. Furthermore, positive global economic growth will continue to support vehicle exports.
WesBank, however, provides some advice to consumers, “When looking at the macroeconomic indicators over the past few months, we see some stability. However, it’s not all plain sailing for car buyers and motorists. The cost of mobility is rising sharply, in keeping with the recent months’ rapidly escalating fuel prices, and contributing to a negative outlook for the remainder of the year. It, once again, shows that consumers should leave breathing room in their budgets to accommodate increases over the duration of their finance contract.”
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