Toyota leads October market as vehicle sales decline

New-vehicle sales in SA declined 2% in October compared to the same month last year, reflecting the persisting economic strain on consumers.

It was the third consecutive month of decline in the market, said motor industry umbrella body Naamsa. The 45,445 units sold last month reflected a decline of 905 units compared to October 2022.

New passenger cars at 29,912 units were 3.5% lower while light commercial vehicles (LCVs), bakkies and minibuses at 12,361 units recorded a 3.0% drop. In recent months LCV sales had exceeded those of last year, largely due to the loss of production of popular models like the Hilux and Hiace when Toyota’s flooded Durban plant closed for several months in 2022.

Economic constrains continued to affect new vehicle sales during the month as rising cost of living and restrictive borrowing costs were depressing demand for luxury goods, said Naamsa.

“The new vehicle market’s prolonged recovery from the Covid-19 pandemic continued into 2023 with the expectation that the market would return to the 2019 level after three years. The market was still 1.3% below the pre-pandemic level in 2022 and for the year to date was now 2.1% units ahead of the corresponding period 2022, on track to recover to the pre-pandemic level of 2019,” said Naamsa CEO Mikel Mabasa.

Government’s long-awaited decision on the future of the local automotive industry was again kicked down the road. In his medium-term budget policy statement in parliament on Wednesday, finance minister Enoch Godongwana  was expected to announce incentives to support the automotive industry’s transition to new-energy vehicles (NEVs). He confirmed government plans to implement tax and expenditure measures to support the automotive sector, but details will only be announced in the 2024 budget review.

“In automotives, a major export and source of employment, the transition to NEVs poses an existential threat to SA vehicle production. This transition will require balancing domestic market demand, establishing renewable energy-based charging infrastructure and supporting production,” he said.

Toyota remained SA’s favourite brand in October with 12,440 units sold, ahead of Volkswagen (6,595) and Suzuki (4,480).

Top 20 selling new vehicles October 2023:

1. Toyota Hilux — 3,110
2. VW Polo Vivo — 2,280
3. Toyota Corolla Cross — 2,100
4. Ford Ranger — 1,853
5. Toyota Hiace — 1,496
6. Isuzu D-Max — 1,464
7. Toyota Starlet — 1,363
8. Suzuki Swift — 1,248
9. VW Polo — 1,235
10. Nissan NP200 — 961
11. Chery Tiggo 4 Pro — 856
12. Toyota Vitz — 779
13. Nissan Magnite — 715
14. Hyundai Grand i10 — 680
15. Renault Kwid — 661
16. VW T-Cross — 641
17. Hyundai i20 — 635
18. Toyota Fortuner — 629
19. VW Polo Sedan — 628
20. Mahindra Scorpio Pik-Up — 565