Another month of lower sales of new vehicles
New-vehicle sales fell again in February but at least the decline was slower than in previous months.
Figures released on Friday by vehicle manufacturers and importers association Naamsa revealed that 44,749 new cars and commercial vehicles were sold in February. That was 413 units, or 0.9%, fewer than the 45,162 of February 2023. That was less than one quarter of January’s 3.8% year-on-year decline and also better than that of the previous five months.
As a result the aggregate market for the first two months of 2024 is 86,964, which is 1.7% behind the 88,456 at the same stage of 2023.
Car sales in February fell 3.1% compared to a year earlier from 29,782 to 28,857. It was a mixed month for commercial vehicles: light commercials, mainly bakkies and minibuses, improved by 2.5% and extra-heavy trucks by 19.2%, but medium and heavy trucks both lost ground.
After two months of 2024, light commercials are 2.5% ahead of 2023, medium trucks are 0.3% down, heavy trucks 2.9% down and extra-heavies 15.7% ahead.
February’s new-vehicle exports were promising. At 39,517, they outsold the 30,991 of a year earlier by 27.5%. After two months, exports are 13.8% ahead of 2023 — 58,797 against 51,675.
Naamsa CEO Mikel Mabasa said domestic market weakness would remain for the immediate future. “With the date of the 2024 general election announced to take place on May 29, economic uncertainty remains the reality for most households and businesses,” he said.
“Brands and dealerships are currently offering enticing incentives to prospective buyers, but it is anticipated that only once the interest-rate-cutting cycle commences, likely during the second half of the year, along with easing inflation, some upward momentum will be sparked in the new-vehicle market.”