Slow sellers in the spotlight
SUBARU in SA has issued a press release which stresses the brand’s commitment to the local market, even though its sales numbers are low.
The iconic Japanese brand, which has been doing business in SA since 1993, sold 67 cars in December last year.
To put that number into perspective one has to look at the overall passenger car figure for December, 26 550 units (all brands), and at a relatively new brand to the local market, Suzuki, which entered the market only 10 years ago and reported 742 sales in December.
With Chevrolet, Daihatsu, Citroën, Proton, MG and Dodge all having departed over the last few years, it’s understandable why Subaru saw the need to assure its clients of its commitment to SA.
Subaru pointed out that its year-on-year sales are up and that it recently opened two new dealerships - Durban North and Plumstead – with four more due to open in Gauteng this year.
Subaru confirming its commitment was a smart move because cautious, more informed buyers, definitely take brands’ market share and footprint into consideration when shopping around for new wheels.
A low volume seller, whether it be brand or model, more often than not has poor resale value.
Service and parts can also become a challenge when dealerships are few and scattered wide.
Other low volume sellers Subaru is not alone in this boat. It shares the life raft with Volvo, Fiat, Tata, Peugeot, Mitsubishi, JMC, Mahindra, GWM and Chrysler (Jeep).
Those brands are failing to do significant numbers in the SA market, and one cannot help but wonder for how long these ‘slow sellers’ are willing to ride the storm in the hope of smoother sales seas.
Below are the total December sales figures for these brands along with the SA market leader, Toyota’s, overall December unit tally and that of newcomer, but fast mover, Suzuki:
• Toyota – 4913 (Passenger only, excluding Hilux and Quantum)
• Suzuki – 742
1. JMC -36
2. Subaru – 67
3. GWM - 67
4. Tata – 101
5. Peugeot – 105
6. Fiat – 119
7. Chrysler (Jeep) – 124
8. Volvo – 139
9. Mahindra – 144
10. Mitsubishi - 157 Numbers don’t lie, and it’s obvious that for these brands the SA market is not smooth sailing.
Other, mainly ultrapremium and sports car brands, such as Porsche (152 units), are also doing small numbers, but have been excluded because they are low-volume sellers because of exclusivity and price, and not because they are unpopular.
BMW and Mercedes-Benz only report aggregated sales data, so one cannot tell how their smaller affiliates such as Mini and Smart are faring.
Opel, on the other hand, is also not doing profitable numbers (106 units), but owing to the brand still being in a transition period (sold off by General Motors recently), it’s difficult to tell in which direction it’s heading.