August new-vehicle sales, at 51 880 units, were up 18.7% compared with the same month last year, driven by ongoing affordable model imports, improving consumer confidence, favourable credit conditions, and a steady recovery in disposable income, says naamsa | The Automotive Business Council.
The new-passenger-car market gained 22.5% in August, to reach 36 914 units – the highest level since September 2015.
Car rental sales accounted for 15% of new-passenger-vehicle sales during the month.
Sales of new small trucks, bakkies, minibuses and panel vans increased by 15.1%, to 12 326 units.
The business end of the market did not mirror the car market’s success, however, with the sales of medium trucks, at 717 units, down 3.9%, while heavy truck and bus sales declined by 8.8%, to 1 923 units.
Vehicle exports fared better, with August new-vehicle export volumes from South Africa’s seven vehicle manufacturers increasing by 6.2%, to 37 500 units
For the year-to-date, vehicle exports are 3% ahead of the same period last year.
This modest gain, however, will come under increasing pressure in the near term as the domestic auto sector is forced to adjust to higher US import tariffs, as well as the knock-on effect of these tariffs as global competition in South Africa’s traditional export markets grows, notes naamsa.
“The industry’s ongoing focus will remain on navigating potential re-routing and [pursuing] further market diversification strategies.”
