New vehicle sales in South Africa: November 2022
South Africa’s new-vehicle market again outperformed expectations in November 2022. Here’s what you need to know, including the country’s top-selling vehicles and most popular brands…
In November 2022, South Africa’s new-vehicle industry registered yet another month of year-on-year growth – its eleventh on the trot – with total sales growing a significant 18.2% to 49 413 units. This figure furthermore represents a 7.5% improvement over October 2022’s tally.
As Naamsa points out, the market remains surprisingly resilient, continuing to outperform expectations in the face of myriad challenges that include rising interest rates, a drastic increase in load-shedding, high fuel prices, a generally weak economy and ongoing new-vehicle supply constraints. Exports sales, meanwhile, spiked 64.7% year on year to 34 310 units.
Out of the 49 413 total reported registrations in South Africa in November 2022, an estimated 39 998 units (or around 81%) represented dealer sales, with 14.7% coming via the vehicle-rental industry, 2.3% from government and 2.0% from industry corporate fleets.
The new passenger-vehicle market improved 16.9% year on year to 32 859 units, again well supported by the rental industry (which accounted for a healthy 20% of all new passenger-car sales). The light-commercial vehicle segment – which includes bakkies and mini-buses – ended November 2022 on 13 477 registrations, representing a strong year-on-year gain of 20.8%.
Meanwhile, WesBank notes November’s performance represents the second-best month of 2022 thus far, slotting in marginally behind March, when the 50 000-unit barrier was last broken.
“November sales put in a fighting closing period for 2022, displaying the relatively constant recovery of the market throughout the course of the year,” says Lebogang Gaoaketse, Head of Marketing and Communications at WesBank, making reference to the traditional slow-down in sales during December. Still, Gaoaketse makes the point the interest-rate spike will “undoubtedly place the onus on consumers to seriously consider affordability when it comes to applying to finance”.
Mark Dommisse, Chairperson of the National Automobile Dealers’ Association (NADA), welcomes the “pleasant surprise” of relatively strong sales in November.
“We were expecting a similar market to October, considering the negatives affecting the economy and growing political uncertainty in the country, but consumers have once again proved us wrong,” says Dommisse, describing the outcome as “most heartening for all sectors of the industry”.
New vehicle sales summary for November 2022
- Aggregate new-vehicle sales of 49 413 units increased by 18.2% (7 618 units) compared to November 2021.
- New passenger-vehicle sales of 32 859 units increased by 16.9% (4 759 units) compared to November 2021.
- New light-commercial vehicle sales of 13 477 units increased by 20.8% (2 323 units) compared to November 2021.
- Export sales of 34 310 units increased by 64.7% (13 479 units) compared to November 2021.
10 best-selling car brands in South Africa for November 2022
Though Haval fell a spot in November 2022, the Chinese brand remained in the top 10.
Toyota continued its climb back towards the record sales numbers it registered just prior to the devastating KwaZulu-Natal floods that caused extensive damage to its Prospecton plant. In November 2022, with production back at full capacity, the Japanese firm’s local division came close to crossing the 14 000-unit threshold, selling more than the second-placed Volkswagen Group (6 406 units), third-placed Suzuki (4 287 units) and fourth-placed Nissan (3 167 units) combined.
Hyundai was again fifth, while Ford climbed one position to sixth, forcing Chinese brand Haval down a spot to seventh. Isuzu held steady in eighth, while Kia and Renault swapped positions, ending the month in ninth and tenth, respectively. With 1 502 units registered, Chery found itself just outside the top 10, while Indian firm Mahindra (1 010 units) was the only other automaker to crack four figures for the month.
1. Toyota – 13 903 units
2. Volkswagen Group – 6 406 units
3. Suzuki – 4 287 units
4. Nissan – 3 167 units
5. Hyundai – 3 002 units
6. Ford – 2 347 units
7. Haval – 2 220 units
8. Isuzu – 2 027 units
9. Kia – 1 892 units
10. Renault – 1 801 units
10 best-selling vehicles in South Africa for November 2022
The Suzuki Swift has become a firm favourite with private and rental-fleet buyers.
No surprises at the very top of the table as the Toyota Hilux (3 408 units) was again South Africa’s best-selling vehicle, and again by quite some margin. The likewise Prospecton-built Toyota Corolla Cross (2 109 units) held steady in a strong second place, while the outgoing Silverton-produced Ford Ranger (1 979 units) gained one spot to finish the month in third.
Rocketing up four places to fourth, the locally assembled Hi-Ace (1 944 units) came exceedingly close to making it an all-Toyota podium, while the Suzuki Swift (1 751 units) moved up a position to fifth. The Volkswagen Polo Vivo (1 741 units) was close behind in sixth, just ahead of the likewise Kariega-manufactured VW Polo hatchback (1 724 units), which made a welcome return to the table in seventh, recovering after placing a lowly 15th in October.
The Struandale-built Isuzu D-Max (1 578 units) fell three places to eighth, while the Toyota Urban Cruiser (1 334 units) – with its future in South Africa currently somewhat uncertain – plummeted six spots to ninth. With 1 322 registrations, the Toyota Starlet returned to claim the final position, meaning there was no space for the Nissan NP200 (1 164 units), which is a fairly unusual occurrence. Other models just outside the top 10 included the Volkswagen T-Cross with 1 046 sales and the Hyundai Grand i10 with 971 units.
1. Toyota Hilux – 3 048 units
2. Toyota Corolla Cross – 2 109 units
3. Ford Ranger – 1 979 units
4. Toyota Hi-Ace – 1 944 units
5. Suzuki Swift – 1 751 units
6. Volkswagen Polo Vivo – 1 741 units
7. Volkswagen Polo (hatch) – 1 724 units
8. Isuzu D-Max – 1 578 units
9. Toyota Urban Cruiser – 1 334 units
10. Toyota Starlet – 1 322 units
Top 8 vehicles exported from South Africa in November 2022
Nearly 10 000 examples of the Polo hatch were exported by VWSA in November 2022.
In November 2022, the Volkswagen Polo hatchback leapt back to the top of the list of exported models, with a whopping 9 790 units shipped overseas from the Kariega facility. The Toyota Hilux (5 466 units) grabbed second place, meaning the Ford Ranger had to settle for third, with 4 299 units exported during the month. As is so often the case, the Isuzu D-Max, Nissan Navara, Nissan NP200, Toyota Fortuner and Toyota Corolla Cross made up the numbers.
It’s also worth noting BMW and Mercedes-Benz did not submit detailed figures to Naamsa, so it’s not known exactly how many new X3 and C-Class sedan units were exported from South African shores in November 2022. For the record, however, Naamsa’s estimates stand at 4 800 units and 8 691 units, respectively.
1. Volkswagen Polo (hatch) – 9 790 units
2. Toyota Hilux – 5 466 units
3. Ford Ranger – 4 299 units
4. Isuzu D-Max – 396 units
5. Nissan Navara – 334 units
6. Nissan NP200 – 172 units
7. Toyota Fortuner – 62 units
8. Toyota Corolla Cross – 54 units
Sales outlook
So, where to from here for the South African market? Well, Naamsa points to the fact the South African Reserve Bank raised the interest rate last month for the seventh consecutive time since November 2021 (and the third consecutive instance of 75 basis points) to its highest level since 2016. Despite this, the new-vehicle market is currently running 13.6% ahead of the corresponding year-to-date period in 2021.
“The recovery in business and leisure travel provided some support to the new-vehicle market to counter the growing pressures on household incomes. GDP growth in South Africa continues to be adjusted downwards and was now expected to be at 1.1% for 2023. In view of the close correlation between new-vehicle sales and the country’s GDP growth rate, single-digit growth in new-vehicle sales could be expected for 2023,” Naamsa cautions.
WesBank echoes Naamsa’s mild concerns for next year, though predicts the market recovery will continue in the short term.
“As consumer confidence grows in the wake of slowly improving economic conditions, we expect the new-vehicle market to continue its recovery. However, the headwinds of load-shedding, the political outlook and the sheer reality of the increased cost of indebtedness will continue to put pressure on just how well new-vehicle sales will perform in 2023,” Gaoaketse explains.
Meanwhile, NADA believes November’s strong sales in the rental sector, as it prepares for what will “hopefully be a bumper festive season”, will have a positive impact on the used market further down the line.
“These sales are important to the second-hand vehicle market, as rental models will filter down to the used-vehicle market in a year or two, helping to alleviate the relative shortage of quality, low-mileage pre-owned models that have been in short supply due to the COVID pandemic and sell-offs by the rental companies,” says Dommisse.
In terms of vehicles exports, Naamsa warns of the impact of “persistently high inflation and aggressive interest-rate hikes in many advanced and developing countries at present”, though still remains optimistic over the medium term. For the record, year-to-date export sales sit at 326 516 units, some 17.9% ahead of the corresponding period in 2021.
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