Kia back in top 10! SA’s best-selling brands in October 2024
South Africa’s new-vehicle market recorded its best month of the year thus far in October 2024. Here’s your market overview, including Mzansi’s most popular brands…
South Africa’s new-vehicle market commenced the final quarter of 2024 on a positive note, with local sales in October 2024 increasing 5.5% year on year to 47 942 units. That, for the record, is the industry’s best month of 2024 thus far (beating July’s tally) and furthermore represents an 8.8% improvement over September 2024’s effort.
The decline in exports, meanwhile, continued, with 23 342 units – a whopping 42.6% down on the same month last year – shipped from South African shores in October 2024. Naamsa, however, believes “an easing of monetary policy in key export markets” could see this part of the industry gain traction again “over the medium term”.
Out of the total reported industry sales in October 2024, Naamsa estimated that 80.4% represented registrations via the dealer channel, while an again significant 14.8% were sales to the vehicle-rental industry, 2.6% to industry corporate fleets and 2.2% to government.
The growth in the local market was clearly driven by the new passenger-vehicle segment, which grew 14.5% year on year to 34 228 units last month. In fact, boosted by rental sales (a considerable 19.8% of that total), that figure represents the highest new passenger-vehicle tally since October 2019. But, as has been the case for several months now, the new light-commercial vehicle segment suffered a year-on-year decline, with sales here falling 12.7% to 10 791 units.
Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA), said that despite “persistent economic challenges”, the growth in the passenger-vehicle segment indicated a “potential rebound in consumer confidence”.
“The robust performance in October highlights a favourable change in consumer sentiment within this segment. Although sales in the rental industry contributed to this uplift, the sustained demand for passenger vehicles serves as an essential barometer for overall consumer trends,” said Cohen.
Lebo Gaoaketse, Head of Marketing and Communication at WesBank, had a similar view, saying that while positivity “began creeping into the market during September”, October’s new-vehicle sales “certainly provide signs of increased optimism”.
“Rental and fleet volumes bolstered the market substantially, but an increase of 14.5% in passenger-car sales overall indicates an uptick in consumer sentiment as the majority of these are retailed off showroom floors,” added Gaoaketse.
New-vehicle sales summary for October 2024
- Aggregate new-vehicle sales of 47 942 units increased by 5.5% (2 506 units) compared to October 2023.
- New passenger-vehicle sales of 34 228 units increased by 14.5% (4 331 units) compared to October 2023.
- New light-commercial vehicle sales of 10 791 units decreased by 12.7% (1 576 units) compared to October 2023.
- Export sales of 23 342 units decreased by 42.6% (17 324 units) compared to October 2023.
10 best-selling automakers in South Africa in October 2024
Toyota reported its best sales month of 2024 thus far, with a whopping 11 891 units (including the Lexus and Hino brands) registered in October 2024. The 2nd-placed Volkswagen Group (6 340 units, including Audi) likewise enjoyed its strongest performance of the year, as did Suzuki (6 006 units) in 3rd, with the latter Japanese brand cracking the 6 000-unit mark for the first time in 2024.
Meanwhile, Ford (2 965 units) squeezed past Hyundai (2 913 units) to grab 4th position in October, forcing the South Korean firm down a ranking to 5th. Isuzu (2 251 units) held steady in 6th place, while Chery (1 831 units) gained a spot to 7th, pushing fellow Chinese automaker GWM (1 796 units) into 8th.
Renault (1 734 units) again settled for 9th spot, while Kia (1 508 units) made a return to the table to snaffle the final position, marking the first time this year the South Korean brand has made the top 10. Propelled by strong sales of its new XUV 3XO, Mahindra hit a record total of 1 421 units to fall just short of cracking the top 10, while Nissan (1 304 units) tumbled down to 12th position with its weakest effort of the year.
The BMW Group (1 007 units, by Naamsa’s estimates) again found itself in 13th, while Omoda & Jaecoo (605 units) climbed to 14th, finishing ahead of Mercedes-Benz (with a Naamsa-estimated 474 units). That meant Stellantis dropped out of the top 15 in October 2024, with 402 units registered.
1. Toyota – 11 891 units
2. Volkswagen Group – 6 340 units
3. Suzuki – 6 006 units
4. Ford – 2 965 units
5. Hyundai – 2 913 units
6. Isuzu – 2 251 units
7. Chery – 1 831 units
8. GWM – 1 796 units
9. Renault – 1 734 units
10. Kia – 1 508 units
Sales outlook in SA for remainder of 2024
What’s next for South Africa’s new-vehicle market as the year draws to a close? Well, Naamsa CEO Mikel Mabasa says October 2024’s strong performance “bodes well for signs of the new-vehicle market slowly turning”.
“Positive indicators of further potential growth include an easing in annual consumer inflation for a 4th consecutive month to 3.8% in September, the lowest level since March 2021, when the rate was 3.2%. In addition, petrol prices [are] at the lowest point in nearly 3 years, creating some breathing space for households,” he says.
Mabasa adds that consumers and businesses can “also look forward to a start of an interest [rate] cutting cycle over the next 18 months”, which should “positively impact some level of relief in expensive debt and provide a stimulus to market sentiment”.
“Although the immediate effects of these positive signs [are] still relatively small, the cumulative impact and momentum going forward [will] hopefully translate into stronger new-vehicle sales in the medium- to long term,” Mabasa explains.
Meanwhile, NADA’s Cohen suggests it will still take “some time” to realise the benefits of easing inflationary pressures and the predicted interest-rate cutting cycle, saying “affordability is still a concern for buyers” and that “this pressure is evident nationwide”. Still, he remains optimistic.
“The South African automotive sector continues to adapt and evolve under challenging conditions. With ongoing government support, proactive consumer engagement by our dealer network and positive economic indicators on the horizon, we remain optimistic about the industry’s role in South Africa’s broader economic recovery,” concludes Cohen.
Finally, WesBank’s Gaoaketse says the various positive indicators “will – over time – provide much-needed relief for stressed” household budgets. “But they will take time to stimulate new-vehicle sales while those same budgets recover from rising debt”.
“We expect further relief in interest rates during November, which should continue to bolster consumer sentiment and business confidence While the market will continue to remain under pressure, all the indicators are in place for the slow recovery of the market to continue,” says Gaoaketse.
Related content
VW’s mystery small SUV: when SA will get its first glimpse