Mzansi Vehicle Industry: February’s New Car Sales and Exports Figures Best Since March 2021
- The new vehicle market continued to surge ahead during February, recording its best sales month since March last year
- February new vehicle sales grew 18.4% compared to February 2021 to 44 229 units, a performance approaching volumes realised during the second half of 2019
- It won't be smooth sailing for the industry as the impact of the fuel price exceeding R21 per litre inland with possibly more increases on the way will put more pressure on consumers
- The industry could also face additional complications over and above microchips as supply and manufacture are potentially disrupted in the region and Russia
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New car sales in South Africa were the main driver for a strong month for the local motor industry despite February being a shorter selling month. Other curveballs for consumers to deal with included interest rate hikes and fuel increases.
That activity was particularly strong on the passenger car dealer floor, sales through that channel growing 27.9% during February, well ahead of market growth. Overall passenger car sales grew 22.4% to 29 563 units with a slightly flatter performance from the rental market this month.
Source: UGC
Light Commercial Vehicles were up 9.4% to 12 290 units compared to February last year, MotorPress reports.
The market has further headwinds to face as fuel prices will exceed R21 per litre inland during March and are destined to rise further amidst tensions in Ukraine, IOL reports. The South African motor industry could also face additional complications over and above microchips as supply and manufacture are potentially disrupted in the region and Russia.
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Lebogang Gaoaketse, Head of Marketing and Communication at WesBank says:
“The situation could amplify the divide between consumer and business demand and the market’s already hampered ability to supply. This increasing amount of pent-up demand may only be balanced by affordability considerations thanks to increased running costs, and household incomes, which remain under pressure.”
It’s a far better situation to be in than weak economic activity and the market is rejoicing thanks to increased activity in sales with the consequent ripple effect throughout the value chain.
The new vehicle market is already 18.8% up to 85 559 units during the first two months of the year compared to the year-to-date performance of 2021, outrunning many forecasts already made for the market .
Toyota and Kaizer Chiefs' strike new deal, more cars and logo added to Amakhosis' shirt
Two of South Africa's strongest brands have reinforced their partnership by updating their deal with Toyota increasing its Kaizer Chiefs fleet with 10 more vehicles, Briefly News reports.
The Japanese carmaker's logo will feature on the left sleeve of the kit and will either be black, gold or white – depending on the colour of the shirt. The team will start wearing the newly branded jerseys from 26 February when they take on Baroka FC in a DStv Premiership clash.
All branded in the famous gold and black colours. The vehicles include Hiace Ses’fikiles, Panel vans, Hilux bakkies, Fortuners, RAV4s, Corolla Cross models and a Land Cruiser 300. Toyota has been Chiefs' official vehicle supplier since 2017.
Source: Briefly News
