The automotive sector showed some signs of recovery in August 2021 but the impact of the recent unrest and Transnet cyberattack is still having a negative impact particularly on exports, according to the Automotive Business Council (Naamsa).
The road to recovery is long and arduous for the automotive sector but despite the recent challenges the numbers for August 2021 aren’t all doom and gloom.
Year-on-year new car sales are up and both the passenger car sales and Light Commercial Vehicle (LCV) sales also recorded positive results during August 2021. Exports, however, remained under pressure, registering a year-on-year decline of 15.6%.
New Car Sales in South Africa for August 2021
- Aggregate new car sales of 41 425 units up by 24.6% (8 166 units) compared to August 2020
- New passenger car sales of 27 157 units up by 40.5% (7 822 units) compared to August 2020
- New LCV sales of 11 749 up by 3.6% (407 units) compared to August 2020
- Export sales of 19 446 units down by 15.6% (3 583 units) compared to August 2020
Best-Selling Car Brands in South Africa for August 2021
- Toyota – 10 543 units
- Volkswagen – 6 930 units
- Nissan – 3 332 units
- Hyundai – 2 749 units
- Suzuki -2 470 units
- Ford – 2 201 units
- Renault – 2 010 units
- Haval – 1 885 units
- Kia – 1 703 units
- Isuzu 1 599 units
- BMW – 1 020 units
- Mazda – 728 units
- Mercedes-Benz – 631 units
- Mahindra – 501 units
- Stellantis – 452 units
New Car Sales Outlook
The automotive sector will remain under pressure for the short to medium term but positive factors for the sector include a positive macro-economic outlook, rental fleet rejuvenation, subdued consumer price inflation and a low interest rate environment.
However, there are challenges that will continue to stifle growth and these include low consumer and business confidence as well as the ongoing semi-conductor shortages which is severely disrupting vehicle supply worldwide. Locally, household finances and disposable income remain constrained with many car buyers flocking to the used car market in search of value amidst a high new vehicle pricing environment.
An unstable supply of electricity as a result of the ongoing challenges faced by Eskom will continue to hamper the recovery of the economy in general.
Exports are expected to improve, assisted by the rebound of the global economy and favourable conditions abroad.
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