The South African new-vehicle market is on the recovery path, with sales bouncing back in February compared with January.

The main issue currently holding back manufacturers is not market appetite, but the ability to supply sufficient vehicles to meet demand, says vehicle retailer Motus.

“Sales activity on new vehicles has improved, but the availability of stock is impeding growth in the new-vehicle segment,” says Motus Retail and Rental CEO Corné Venter.

“Many importers underestimated the recovery of the South African vehicle market and, as a result, the industry is experiencing significant stock shortages with the current situation expected to continue for a while. 

“Component availability is also impacting manufacturing and has a further effect on vehicle stock levels.”

Globally, the shipping industry is in disarray with congestion at several ports. Supply disruptions have also caused havoc with the scheduling of ships, he adds.

As a result, the sale of locally manufactured vehicles is performing better than usual, as they are less affected by these global disruptions.

Motus believes that a number of new model launches should have a positive effect on March sales figures, as some of the new vehicles arriving have been anticipated for some time, but delayed owing to Covid-19. 

Big hitters going on sale this month include the Toyota Urban Cruiser, BMW M3 and M4, Kia Picanto X-Line, and seven Audi performance models, including the RS5 and TTRS. 

Volkswagen will also be expanding their Transporter range, while the new Hyundai Sante Fe is expected imminently. 

Renault will be launching their Kiger in the second half of 2021.

“New-car sales will remain under pressure due to stock supply, but it is expected that this demand will roll over into pre-owned vehicle sales,” notes Venter.

“Motus dealers are currently selling one pre-owned vehicle for every new vehicle sold. Dealers are also seeing pre-owned vehicles fetching better prices than ever before with the demand at an all-time high.”

Motus expects growth in all sales segments during the month of March, as the combination of the reduction in Covid-19 infections and easing of lockdown restrictions should have a positive impact on consumer sentiment and economic activity.

It is expected that the vehicle market will benefit from this, although it might only become evident towards the end of the month.

“With not many price increases expected in the coming months and, if the current demand continues and manufacturers are able to rectify the stock shortages, we are likely to see a stronger recovery in the new-vehicle market,” says Venter.