Vehicle Sales and business confidence Improves

South Africa, 1 August 2024:

The Automotive Business Council said that they welcomed uptick in the July 2024 new vehicle sales figures and that this could be  and indicator of a  turning point for an improved second half of the year performance.

The domestic new vehicle sales in July 2024, was at 44,229 units, an increase of 657 units, or a gain of 1,5%, from the 43,572 vehicles sold in July 2023. Export sales, however, decreased by 12,671 units, or 33,2%, to 25,461 units in July 2024 compared to the 38,132 vehicles exported in July 2023.

Overall, out of the total reported industry sales of 44,229 vehicles, an estimated 35,853 units, or 81,1%, represented dealer sales, an estimated 13,5% represented sales to the vehicle rental industry, 2,9% to government, and 2,5% to industry corporate fleets.

The July 2024 new passenger car market at 29,934 units indicates an increase of 1,894 cars, or a gain of 6,8%, compared to the 28,040 new cars sold in July 2023. Car rental sales accounted for a sound 17,1% of new passenger vehicles sales during the month.

Domestic sales of new light commercial vehicles, bakkies and mini-buses at 11,554 units during July 2024, however recorded a decrease of 1,112 units, or a loss of 8,8%, from the 12,666 light commercial vehicles sold during July 2023.

Sales for medium and heavy truck segment was also down in July 2024  at 641 units and 2,100 units, respectively, with a decrease of 45 units, or 6,6% from the 686 units sold in July 2023 in the case of medium commercial vehicles, and, a decrease of 80 vehicles, or -3,7% for heavy trucks and buses, compared tom July 2023’

July 2024 exports sales were at 25,461 units reflecting a decrease of 12,671 vehicles, or a loss of 33,2%, compared to the 38,132 vehicles exported in July 2023. For the year to date, vehicle exports are now 13,5% below the corresponding period 2023.

Encouraging aspects for growth and increased consumer spending for the balance of the year include four consecutive months of no load-shedding, a stronger Rand exchange rate, and potentially up to two interest rate cuts before year-end.

The ABSA Purchasing Managers’ Index that tracks expected business conditions in six months’ time increased to 69.4 points in July 2024 from 68.1 in June 2024. This is the most optimistic respondents have been about business conditions going forward since early 2022.