Isuzu was the big winner in February, with sales surging by 29%, shifting the brand to seventh overall.
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South Africa’s motor industry continued on its robust growth path in February, with 53,455 new vehicles sold.
According to Naamsa | The Automotive Business Council, last month saw the strongest February performance since 2013, and sales were also 11.4% ahead of the same month last year.
The dealer channels accounted for 85% of sales in February, followed by the rental industry (9.6%), government (3.0%) and corporate fleets (2.4%).
The growth was evenly spread through the segments, with passenger car sales, at 33,750, seeing year-on-year growth of 11.3% while light commercial sales, at 13,218, grew by 11.9%. Medium commercial vehicle sales remained flat at 720 units, while the heavies saw a 13.6% increase to 1,941 units.
However, new vehicle exports saw a worrying decline, with February’s total of 24,221 units representing a decrease of 28.1% versus the same month last year.
“The industry’s export performance remains subject to heightened protectionism across several of South Africa’s key export markets, while increasingly stringent decarbonisation requirements in destination markets continue to weigh on the competitiveness of South African vehicle exports,” Naamsa said.
Domestic sales, however, reflect a broad-based improvement in underlying demand fundamentals, Naamsa added, while easing inflation levels continue to support the market. Rising fuel prices due to the conflict in the Middle East and higher inflation due to a weakening rand could dampen demand for new vehicles in the coming months as consumers take a more cautious approach.
“Taken together, the fuel levy adjustments (confirmed for April), elevated international crude prices, and currency dynamics imply an inflationary impulse for transport-related costs that could, in the short to medium term, weigh on consumer purchasing power and total cost of vehicle ownership,” Naamsa said.
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Brandon Cohen, national chairperson of the National Automobile Dealers’ Association (NADA), said that oil would be a cardinal player at this time of crisis and would have an effect on many aspects of life, pushing up both manufacturing and transport costs.
“Although the next few months will look to inflation, interest rate numbers, fuel costs and even local government elections, for now, consumer sentiment is strong, people are buying vehicles in the new and used space, and they are protecting those assets with VAPS, which is also a good sign,” Cohen added.
On the manufacturer sales charts, the top three all posted moderate growth, with Toyota sales increasing by 1.3%, Suzuki by 2.4%, and Volkswagen by 1.6%. Further down the field, Isuzu jumped to seventh place, from 10th in January, with a sales growth of 29%.
IOL Motoring