Suzuki unseats VW Group! SA’s best-selling automakers in April 2024
After 8 straight months of year-on-year declines, South Africa’s new-vehicle market finally showed marginal growth in April 2024. Here’s your overview, including Mzansi’s most popular brands, with a surprise or 2…
Finally, the streak is broken. After 8 consecutive months of year-on-year declines in sales, South Africa’s new-vehicle market returned to growth in April 2024. Though the sales tally increased just 2.2% to 38 172 units, the industry will no doubt breathe a massive sigh of relief. In addition, there was some significant movements on the list of SA’s best-selling automakers, but more on that in a bit.
According to Naamsa, this “positive performance in the new-vehicle market during April 2024 was a welcome development along with a full month of no load-shedding, which likely supported business conditions”. That said, the local market total represents a 13.7% fall compared with March 2024, while new-vehicle exports declined by a considerable 23.9% year on year to 23 394 units.
Out of the total reported industry sales last month, Naamsa estimates that 89.9% represented registrations via the dealer channel, while 5.0% were sales to the vehicle-rental industry, 2.7% to government and 2.4% to industry corporate fleets.
At 25 972 units, the new passenger-vehicle market registered a 6.1% year-on-year gain in April 2024, with rental sales accounting for 6.6% of that total. Interestingly, the usually robust light-commercial vehicle segment suffered a 9.0% year-on-year fall to 9 646 units last month.
Meanwhile, Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA), says this new uptick in sales marks a “notable improvement”, suggesting the industry has “demonstrated resilience”.
“This upturn is particularly significant given the 8 consecutive months of sales decline that preceded it, marking a promising development for the industry,” commented Cohen, before cautioning that a “more nuanced perspective” emerges when comparing April 2024’s sales to those of March 2024.
Lebo Gaoaketse, Head of Marketing and Communication at WesBank, makes a similar point, though adds the market should be wary of “false hope”.
“Any comparisons year-on-year must also be considered within the number of selling days during April. March sales this year were heavily impacted by the public holidays being early in the calendar when the holidays fell within April 2023. It means April 2024 sales were earned in 21 selling days versus 3 days [fewer] during April 2023,” explains Gaoaketse.
New-vehicle sales summary for April 2024
- Aggregate new-vehicle sales of 38 172 units increase by 2.2% (814 units) compared to April 2023.
- New passenger-vehicle sales of 25 972 units increased by 6.1% (1 493 units) compared to April 2023.
- New light-commercial vehicle sales of 9 646 units decreased by 9.0% (953 units) compared to April 2023.
- Export sales of 23 394 units decreased by 23.9% (7 355 units) compared to April 2023.
10 best-selling automakers in South Africa in April 2024
There are no surprises right at the top of the pile, with Toyota again taking the title of South Africa’s best-selling automaker in April 2024. Still, the Japanese giant’s tally of 8 541 units represents a 23.1% month-on-month fall, compared with March 2024.
The big news, though, is the fact Suzuki moves up to 2nd place overall, pushing the Volkswagen Group (which includes sales of the Audi brand) into a decidedly unfamiliar 3rd position. In April 2024, Suzuki registered 4 891 units, putting it 133 units ahead of the VW Group (4 758 units). This is, of course, the first time the Hamamatsu-based brand’s local division has secured the runner-up position and the first time in recent memory the VW Group has fallen from the top 2.
Meanwhile, Ford (2 614 units) climbs 3 spots to 4th, while Hyundai (2 134 units) moves up a position to 5th. In another significant development within the top 10, Chery (2 009 units) breached the 2000-unit barrier in April, seeing the Chinese firm rocket to a new high of 6th place overall (and 4th in the passenger-vehicle market).
As such, Isuzu (1 540 units) slips a couple of rankings to 7th, while GWM holds steady in 8th, registering 1 493 units last month. After achieving a lofty 4th position in March 2024 (largely thanks to a spike in sales of the outgoing NP200), Nissan tumbles to a lowly 9th place in April, with its total falling a whopping 63.9% month on month to 1 443 units. Renault (1 307 units) again closed out the table in 10th.
Outside of the top 10, the figures suggest the BMW Group (with a Naamsa-estimated 1 231 units) claimed 11th place, finishing ahead of Kia (1 003 units), Mahindra (893 units), Mercedes-Benz (with a Naamsa-estimated 562 units) and Stellantis (437 units).
1. Toyota – 8 541 units
2. Suzuki – 4 891 units
3. Volkswagen Group – 4 758 units
4. Ford – 2 614 units
5. Hyundai – 2 134 units
6. Chery – 2 009 units
7. Isuzu – 1 540 units
8. GWM – 1 493 units
9. Nissan – 1 443 units
10. Renault – 1 307 units
Vehicle-sales outlook in SA for rest of 2024
So, what next for South Africa’s new-vehicle market? Well, Naamsa says “economic factors remain the most important aspects affecting new-vehicle sales, and these include interest rates, unemployment rates, GDP growth rates, disposable income and exchange rates”.
“As increases in interest rates changed the affordability model for consumers, downsizing purchases remained a significant factor linked to consumers being more selective and financially conscious in their vehicle choices,” says the industry representative body.
“The composition of the South African vehicle market is therefore reflecting the growing popularity of less expensive, smaller cars, sport utility vehicles (SUVs) and crossovers, and light commercial vehicles. After the upcoming May 2024 national elections and once the interest-rate cutting cycle commences, likely during the second half of the year, prospects for the new-vehicle market are anticipated to improve,” concludes Naamsa.
NADA’s Cohen is similarly optimistic, saying the industry’s “ability to weather challenges and exhibit year-on-year comparative growth amidst adversity is commendable”.
“As the industry navigates evolving landscapes and adapts to changing consumer behaviours, we continue to see new vehicle sales around the 40 000-plus mark,” he adds, emphasising that NADA anticipates “continued resilience and adaptation” from South Africa’s automotive sector.
WesBank’s Gaoaketse has seemingly adopted a somewhat more cautious stance, pointing out that consumers “continue to face barriers to debt” as well as grappling with the “ongoing challenges of affordability”.
“High interest rates impact already indebted consumers on linked-rate agreements to service debt, whilst also influencing the purchase decision on a big capital asset such as a vehicle given the wherewithal to afford the instalments. We expect this will continue to limit the ability for banks to service applications and, therefore, continue to lengthen the replacement cycle,” explains Gaoaketse.
“Elections at the end of this month will undoubtedly impact May sales, providing an overall challenging picture for the first half [of 2024]. However, we continue to expect raised levels of activity during the 2nd half despite the headwinds facing consumers and business alike,” he concludes.
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