Toyota tops the August sales charts in SA

SA’s new vehicle sales fell 3.1% in August to 45,679, the biggest year-on-year decline since December 2021, according to figures released by Naamsa.

It was a mixed bag with passenger cars — at 28,951 units — declining 6.7% compared with August 2022, while light commercial vehicles (including bakkies and minibuses) recorded a small 2.7% increase to 13,652 units.

August overall sales were 5.2% ahead of July sales and the market has performed resiliently despite tightening household budgets, low business and consumer confidence and the impact of the energy crisis among other factors, said Lebo Gaoaketse, head of marketing and communication at WesBank. 

Gaoaketse said the broader context of August sales provides some cause for concern but being a single month’s performance, it is not yet indicative of a trend.

“New vehicle sales have defied the odds in their slow recovery since the pandemic. Given the tough economic conditions, consumers have been under immense budget pressure since 2020. Consequently, two major trends impacted car purchasing behaviour: the pre-owned market boomed in the face of affordability, or consumers held onto their cars for longer rather than upgrading,” he said.

Brandon Cohen, chair of the National Automobile Dealers’ Association, said the resilience of the industry in 2023 continues to astound, “but we knew there had to be a tipping point, and this is what happened in August”.

“Interest rates represent the most significant obstacle to vehicle sales presently. When we factor in new car pricing and the negative impact of a weak rand, we witness a perfect storm of reduced affordability in a market with fewer and fewer cars available in different price brackets,” he said. 

“Inflation has dropped to 4.7%, well within the South African Reserve Bank’s target range of 3% to 6%. If this trend continues, we may have reached the peak of the rate cycle, or at least there might be no further increases. There is hope interest rates will decrease, potentially as early as November, if economic data permits, otherwise, in the first quarter of 2024.”

Toyota continued to lead the charts as the country’s most popular brand in August, with 12,233 units sold for a 26.8% market share.

The Hilux bakkie retained its regular spot as the top seller. Volkswagen’s Polo Vivo was second overall and the best-selling passenger car. Bakkies, small hatchbacks and compact SUVs/crossovers continue to dominate the sales charts.

TOP SELLING NEW VEHICLES AUGUST 2023

1. Toyota Hilux — 3,309
2. Volkswagen Polo Vivo — 2,452
3. Ford Ranger — 2,367
4. Toyota Corolla Cross — 2,130
5. Isuzu D-Max — 1,632
6. Toyota Hi-Ace — 1,534
7. Toyota Starlet — 1,372
8. Suzuki Swift — 1,349
9. VW Polo — 1,153
10. Nissan NP200 — 1,064
11. Chery Tiggo 4 Pro — 809
12. Hyundai Venue — 782
13. Nissan Magnite — 773
14. Hyundai Grand i10 — 767
15. Haval Jolion — 761
16. Renault Kiger — 718
17. Kia Sonet — 702
18. Mahindra Scorpio Pik Up — 701
19. Renault Kwid — 684
20. Toyota Fortuner — 651
21. GWM P-Series — 567
22. Toyota Urban Cruiser — 523
23. Nissan Navara — 481
24. Suzuki S-Presso — 481
25. Suzuki Ertiga — 468
26. Toyota Vitz — 467
27. Chery Tiggo 7 Pro — 460
28. VW T-Cross — 430
29. Haval H6 — 408
30. Suzuki Baleno — 407

* List excludes BMW and Mercedes-Benz who do not report sales figures for individual models. Overall sales in August for BMW/Mini were 930 units and for Mercedes-Benz 560 units.