Suzuki runs VW Group close! SA’s best-sellers in February 2024
South Africa’s new-vehicle market suffered its 7th consecutive month of year-on-year decline in February 2024. But it wasn’t all bad news. Here’s your full overview, including Mzansi’s most popular brands, best-selling cars and more…
February 2024 represented the South African new-vehicle industry’s 7th consecutive month of year-on-year decline. That said, it certainly wasn’t a substantial fall, with the market’s total of 44 749 units reflecting a marginal drop of just 0.9% compared with the same month in 2023.
Furthermore, February 2024’s final tally represented a month-on-month improvement of 7.5% compared with January’s relatively subdued effort of 41 636 units. Exports, meanwhile, recorded what industry representative body Naamsa described as a “sound” year-on-year increase of 27.5% to 39 517 units. So, there’s certainly some positive news, too.
Out of the total reported industry sales in February 2024, Naamsa estimated that 37 913 units (or 84.7%) represented registrations via the dealer channel, while 9.6% were sales to the vehicle-rental industry, 3.4% to government and 2.3% to industry corporate fleets.
In February 2024, Mzansi’s new passenger-vehicle market registered a year-on-year decline of 3.1% to end on 28 857, with rental sales accounting for 12.9% of that total. The country’s light-commercial vehicle segment, meanwhile, once again bucked the industry trend, enjoying a 2.5% year-on-year gain to end on 13 306 units.
Meanwhile, Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA), described February as “another challenging month” for the industry as “economic pressure and political uncertainty” continued to impede growth. Cohen further pointed to recent fuel-price hikes, “further strained consumer pockets”, the “looming” general election and recent Reserve Bank statements on interest rates.
“Despite these challenges and passenger-car sales dipping by 3.1%, there are some positive aspects. Light-commercial vehicles experienced 2.5% growth. The heavy truck market showed robust demand with a 14% month-on-month increase. Dealer sales accounted for 37 913 units, or 84.7% of total sales, indicating some consumer appetite, supported by dealership incentives,” said Cohen.
Lebo Gaoaketse, Head of Marketing and Communication at WesBank, said the year’s 2nd month sales were “significantly improved” over January in volume terms, “providing some hope” for an industry that has been down year on year for 7 straight months.
“February sales were the smallest decline in sales over the past 7 consecutive months of negative growth. The month also represented a fairly robust volume, which was slightly higher than the average monthly sales last year,” Gaoaketse added.
New-vehicle sales summary for February 2024
- Aggregate new-vehicle sales of 44 749 units decreased by 0.9% (413 units) compared to February 2023.
- New passenger-vehicle sales of 28 857 units decreased by 3.1% (925 units) compared to February 2023.
- New light-commercial vehicle sales of 13 306 units increased by 2.5% (328 units) compared to February 2023.
- Export sales of 39 517 units increased by 27.5% (8 526 units) compared to February 2023.
10 best-selling automakers in South Africa in February 2024
As you’ve probably guessed, Toyota (including the Lexus and Hino marques) was once again South Africa’s best-selling automaker last month, fresh off winning the prestigious Brand of the Year title at the 2023/24 Cars.co.za Consumer Awards. In February 2024, the Japanese firm’s local division sold as many as 11 524 units, representing a 6.2% increase over January’s effort.
The Volkswagen Group (5 333 units, including both the VW and Audi brands) was again 2nd, though the 3rd-placed Suzuki (5 221 units) narrowed the gap even further, finishing a mere 112 units behind the German firm after being just 287 registrations off the pace in the previous month. That represented a near-record sales performance for the Hamamatsu-based automaker’s local division, beaten only by January’s tally.
Meanwhile, Nissan (2 739 units) climbed a position to grab 4th, ending February 2024 just 7 units ahead of Ford (2 732 units), with the Blue Oval brand thus relegated to 5th. The rest of the top 10 was unchanged, with Hyundai (2 512 units) again having to settle for 6th, ahead of Isuzu (2 101 units) in 7th and Haval (1 656 units) in 8th. Chery (1 504 units) retained 9th position, cracking the 1 500-unit mark in the process, while Renault again closed out the table, though its total slid to 1 316 units.
Fascinatingly, Naamsa’s figures suggested the BMW Group (1 194 units) moved up to 11th place, meaning Kia (1 157 units) ranked a lowly 12th last month. Meanwhile, Mahindra made it into 4 figures, finishing the 2nd month of 2024 on 1 058 units and thus grabbing 13th place ahead of Mercedes-Benz (with a Naamsa-estimated 527 units).
1. Toyota – 11 524 units
2. Volkswagen Group – 5 333 units
3. Suzuki – 5 221 units
4. Nissan – 2 739 units
5. Ford – 2 732 units
6. Hyundai – 2 512 units
7. Isuzu – 2 101 units
8. Haval – 1 656 units
9. Chery – 1 504 units
10. Renault – 1 316 units
15 best-selling vehicles in South Africa in February 2024
Yet again, the Toyota Hilux range – which will soon expand with fresh 48V mild-hybrid derivatives (be sure to check out our pricing scoop story on these new Hilux MHEVs) – was South Africa’s top seller, with a considerable 3 100 units of the Prospecton-built bakkie registered in February 2024.
The Silverton-produced Ford Ranger (2 187 units), meanwhile, climbed a ranking to grab the runner-up position, while the likewise locally built Toyota Corolla Cross (1 959 units) completed the podium, also moving up a place compared with January. That meant the Kariega-manufactured Volkswagen Polo Vivo (1 861 units) slipped a couple of spots to 4th. The Isuzu D-Max enjoyed a strong showing in February 2024, with its tally of 1 740 registrations (including 416 sales to government) proving enough for the Struandale-produced bakkie to jump 2 positions to 5th.
The Indian-built Suzuki Swift (1 627 units) – Mzansi’s highest-ranking imported vehicle once more – thus fell a place to 6th, though managed to keep its nose ahead of the likewise Suzuki-made (but Baleno-based) Toyota Starlet, which ended on 1 481 units in 7th. The Hyundai Grand i10 (1 313 units, 50 of which were registered in the light-commercial space) made a return to the table in 8th, almost doubling its January effort. In its penultimate month of manufacture, the Rosslyn-built Nissan NP200 also re-appeared in the top 10, ending on 1 276 units, while the Toyota Hi-Ace (1 167 units) dropped 2 places to close out the table.
What about the vehicles just outside the top 10 in February 2024? Well, the Kariega-made Volkswagen Polo hatchback (988 units) was pushed off the table again, having to settle for 11th place last month. The Chery Tiggo 4 Pro (964 units) remained in 12th and the Nissan Magnite (847 units) in 13th, while the Prospecton-built Toyota Fortuner (722 units) slipped 4 spots to 14th. Finally, the KwaZulu-Natal-assembled Mahindra Pik Up (715 units) snaffled 15th.
1. Toyota Hilux – 3 100 units
2. Ford Ranger – 2 187 units
3. Toyota Corolla Cross – 1 959 units
4. Volkswagen Polo Vivo – 1 861 units
5. Isuzu D-Max – 1 740 units
6. Suzuki Swift – 1 627 units
7. Toyota Starlet – 1 481 units
8. Hyundai Grand i10 – 1 313 units
9. Nissan NP200 – 1 276 units
10. Toyota Hi-Ace – 1 167 units
11. Volkswagen Polo (hatch) – 988 units
12. Chery Tiggo 4 Pro – 964 units
13. Nissan Magnite – 847 units
14. Toyota Fortuner – 722 units
15. Mahindra Pik Up – 715 units
Vehicle-sales outlook in SA for rest of 2024
So, what awaits South Africa’s new-vehicle market for the remainder of the year? Well, Naamsa says February 2024’s performance was “in line with industry expectations of an anticipated tough first half of the year”, suggesting the market’s in for yet more pain in the next few months.
“The persisting economic strain remain[s] a real concern for household income and the weak new-vehicle market reflects that middle-income households are restricting big financial commitments for items such as vehicles at present,” the industry representative body says, before adding the “ripple effect of higher interest rates, higher fuel prices and no relief for personal income tax payers” will continue to impact household incomes for the “foreseeable future”.
“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, [that] some upward momentum will be sparked in the new-vehicle market,” Naamsa explains.
Meanwhile, NADA’s Cohen points to a trend of consumers “downsizing and conducting extensive research into pricing and financing options”. He adds that affordability “remains a crucial factor in purchasing decisions”, saying South Africans are “increasingly turning to more budget-friendly vehicles due to economic challenges, high interest rates and escalating fuel costs”.
In addition, Cohen believes the local market is becoming “increasingly competitive, with a growing number of Asian participants”, saying Chinese brands are making a “significant impact in both the passenger-car and overall truck markets”. He believe this trend is “reshaping the competitive landscape, posing challenges for traditional premium dealerships”.
“Some loyal premium brand customers extend maintenance plans, but the majority are either buying down, waiting or transitioning to pre-owned vehicles, leading to significant growth in the pre-owned car market compared to new cars. Market dynamics, influenced by economic conditions and changing consumer preferences, are causing a re-evaluation of traditional brand loyalty,” explains Cohen.
Finally, WesBank’s Gaoaketse echoes Naamsa’s concerns, saying first-half sales are likely “to trade in tough conditions, meaning the sector shouldn’t expect any form of sustainable growth over the next 4 months”.
“Those tough first-half trading conditions are impacted by consumer and business uncertainty in the lead-up to elections, continued economic headwinds of high interest rates and fuel prices, and inflation that has edged more towards the upper end of the target scale,” warns Gaoaketse. Still, he notes that despite these seemingly “unfavourable conditions”, applications for finance at WesBank are up 8.4%, indicating a “robust level of demand”.
“The optimistic view of the market for 2024 would consider February sales as a reassuring volume despite the conditions enjoying higher levels of demand than performance during the first half, which would allow improved market growth during the second half,” says Gaoaketse.
“If the currency, inflation and fuel prices could come under control, interest-rate cuts could be expected later in the year, stimulating growth and meeting those levels of demand. That would be good news for the overall economy and new vehicle sales,” he concludes.
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