The new-vehicle market started the year “on a very positive note”, continuing its gradual recovery to pre-Covid-19 levels, says Naamsa | The Automotive Business Council.
Domestic new-vehicle sales in January increased by 19.5%, to 41 382 units, compared with the same month last year.
Of total industry sales, an estimated 84.2% represented dealer sales, with 12.1% of vehicles entering rental fleets. About 1.3% of new vehicles were sold to industry corporate fleets, with the remaining 2.4% procured by government.
The new-passenger-car market reached 30 037 units in January, which is a 26.6% gain on the same month last year.
The car-rental industry accounted for a noteworthy 15.3% of new-car sales last month.
Sales of new bakkies, vans and taxis increased by 3.8% in January, to 9 629 units.
Medium-truck sales declined by 4.3%, reaching 465 units, while heavy-truck and bus sales jumped by 9.6%, to 1 251 units.
Amidst the largely good news, January new-vehicle exports from South Africa, however, declined by 9.3%, to 19 089 units.
“Although the momentum on the vehicle export side at present is downwards, it is anticipated to gain traction during the year on the back of further new model introductions by major vehicle exporters, as well as a favourable global economic outlook,” says Naamsa.
The council also expects an upward trend in the domestic new-vehicle market over the next three years.