South Africa’s domestic new car sales rose 2.6% year-on-year, but exports fell 11.5%, according to thelatest data fromNaamsa.

According to his February 2023 new car sales report for the South African Association of AutomobileManufacturers(Naamsa), exports of automobiles and auto parts have increased from 34,352 units inFebruary 2022 to decreased to30,409 units.

However, domestic sales increased despite a decline in exports.

According to the association, domestic sales of new light commercial vehicles, buckies and minibusesincreased by 683units (5.5%) from 12,289 units in February 2022 to 12,972 units in February 2023.

Medium-duty commercial vehicles showed negative year-on-year growth from 517 units in February 2022 to435 units inFebruary 2023, while the super-heavy truck segment of the industry will grow from 1,186 unitsin 2022 to It showedpositive growth to 1,244 units. This corresponds to a decrease of 15.8% and anincrease of 4.8%.

The industry reported total sales of 45,352 vehicles. This consists of dealer sales, rental industry sales, andsales togovernment and industrial vehicles.

The breakdown of these four segments is as follows:

Dealers accounted for 83.6% of sales, with an estimated 37,091 units sold.
The rental industry accounts for 9% of sales.
Government sales accounted for 5.1% of sales. Industrial corporate fleets accounted for 2.3% of sales.
According to Naamsa, the automotive industry contributes 4.3% of his GDP to South Africa.

Market forecast

While some February 2023 numbers are bright, the weak performance of the new car market is consistentwithexpectations of a weak economy combined with ongoing structural problems and rising costs of living,Naamsa said. saidMr.

“The South African Reserve Bank’s decision to raise interest rates for the eighth year in a row is a reminderthat, like manycountries around the world, South Africa remains plagued by rising costs of living.”

Naamsa said the current inflationary environment means consumer spending and household disposableincome willcontinue to shrink, leading to fuel costs, electricity bills and many other significant costs thatdirectly influence car buyingdecisions. added that it means that the Arguably, the disruptive high levelof load shedding will also amplify the negativeimpact on South Africa’s car production and partsmanufacturing, putting pressure on the country’s export sector.

The association added that the state treasury’s disappointing stance of not announcing a subsidy programfor themanufacturing of NEVs and NEV components in the country has also dampened sentiment within thesector.

Mikel Mavasa, CEO of Naamsa, said: “Load shedding will advance the industry’s localization efforts,create sustainableautomotive jobs and boost South Africa’s economic growth by attractinginvestment opportunities to the country. It’s thebiggest obstacle to maintaining it.”

The new car market is unpredictable, but Naamsa said sales are likely to pick up in 2023.

“Despite slow momentum in the new car market, domestic sales are forecast to grow by 6.3% and exportsales by 8.3% in2023,” the company said.

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