Over the course of November 2019, new vehicle sales in South Africa had an aggregate of 44 738 units. Though this number may look impressive, it was one of the worst months in 2019 so far.
With only December remaining, we can be assured that the holiday season will bring another downward spiral to the overall sales this year.
According to sales statistics released by the National Association of Automobile Manufacturers of South Africa (Naamsa), here’s a breakdown of how the various sectors fared in November 2019.
Sales by segments
Passenger cars were responsible for the largest portion of all sales last month. Over the course of November, 31 44 new passenger cars were sold off showroom floors. Light commercial vehicles (LCVs), which includes bakkies, saw a decline of 22.1% over November 2018 to register a total of 10 679 last month.
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Commercial vehicles accounted for 2615 of all vehicle sales.
Naamsa commented: “The overall declining trend in the new vehicle market has continued into November 2019 affected by numerous constraining factors. The current low economic growth environment and enduring pressure on household disposable income due to rising costs of living are not conducive to uplifting business and consumer confidence.
“As a result, conditions in the domestic new vehicle market were expected to remain under pressure over the short to medium term.”
Sales by market
In November 2019, 35 168 of all sales were through the South African dealer channel. Car rental agencies acquired a total of 7084 new vehicles, whereas government and corporate were responsible for 1987 units and 1399 units, respectively.
According to the National Automobile Dealers' Association (NADA), the sales through the dealer channel saw a decline of 4.6% compared to sales in October 2019. Year-on-year (November 2018 vs. November 2019), sales declined by 3.4%.
Gary McCraw, National Director for NADA, says: “It is tough going in the market at the moment and we all still wait for the green shoots to appear. As sales continue to decline and consumers buckle from the rising cost of living and economic uncertainty, other areas of business such as parts, workshop and pre-owned cars remain a key area of focus for franchised retailers.”