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Reflecting on the new vehicle sales statistics for the month of June 2022 naamsa said that the new vehicle market’s performance was inspiring considering ever-increasing challenging market conditions.
Aggregate domestic new vehicle sales in June 2022, at 41 019 units reflected an increase of 2 888 units, or 7,6%, from the 38 131 vehicles sold in June 2021. Export sales recorded an increase of 5 044 units, or 18,0%, to 33 054 units in June 2022 compared to the 28 010 vehicles exported in June 2021.
Overall, out of the total reported industry sales of 41 019 vehicles, an estimated 34 935 units, or 85,2%, represented dealer sales, an estimated 8,6% represented sales to the vehicle rental industry, 5,0% to industry corporate fleets, and 1,2% sales to government.
The June 2022 new passenger car market at 29 545 units had registered an increase of 5 048 cars, or a gain of 20,6%, compared to the 24 497 new cars sold in June 2021. The car rental industry supported the new passenger car market during the month and accounted for 11,2% of sales in June 2022.
Domestic sales of new light commercial vehicles, bakkies and mini-buses at 8 877 units during June 2022 had recorded a decline of 2 329 units, or a fall of 20,8%, from the 11 206 light commercial vehicles sold during June 2021.
Sales for medium and heavy truck segments of the industry reflected a good performance during the month and at 697 units and 1 900 units, respectively, showed an increase of 9 units, or 1,3% in the case of medium commercial vehicles, and, in the case of heavy trucks and buses an increase of 160 vehicles, or a gain of 9,2%, compared to the corresponding month last year.
The June 2022 exports sales number at 33 054 units reflected an increase of 5 044 vehicles, or 18,0%, compared to the 28 010 vehicles exported in June 2021. For the first half of the year vehicle exports were now 2,9% below the level of the corresponding period 2021.
Considering several upside risks to the economy and the inflation outlook, the new vehicle market delivered an upbeat performance during the month of June 2022. However, as consumers start to feel the pinch of rising food and fuel prices along with higher interest rates on their cost of living, the spill-over effect of reduced disposable income will increasingly result in lower demand for non-essentials. In a further blow to the economy resulting in escalating business and consumer anxiety, stage 6 load shedding was implemented during the month, only the second time since 2019.
Just emerging from COVID-19 and the impact of the devastating floods in KZN, stage 6 load shedding will cost the South African economy dearly at a time when it is already facing a myriad of headwinds battling to recover.
Passenger car exports performed well during the month, but LCV exports lagged due to the knock-on effects of the KZN floods as well as the ongoing shortage of semi-conductors impacting on vehicle production. Although the ongoing war in Ukraine, supply chain disruptions and the risk of stagflation are hampering global growth and will weigh in on the domestic industry’s export potential, prospects for 2022 remain optimistic on the back of further new locally manufactured model introductions during the year.