February SA car sales raise industry spirits, but we're still in hot water

• South Africans return to car dealers en masse as vehicle sales rise.
  
• Economic pressure is not souring an appetite for new models.
• Toyota once again leads the way in sales volumes for the month.
• For motoring news, go to Wheels24

Rising interest rates. Excruciating fuel prices. An economy that's in a state of reflux as it comes to grips with more than 700 days of lockdown due to the Covid-19 pandemic. Despite these variables and more, last month's (February 2022) new vehicle sales in South Africa has been the best it's ever been in the past year.

According to WesBank, the new vehicle market surged ahead during February, recording its best sales month since March last year.

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"Despite the traditionally short February selling month and in the face of interest rate hikes and fuel price increases, new vehicle sales performed reassuringly well during the month," says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank.

"Consumer demand was strong during February, particularly for new vehicles as opposed to used, borne out by WesBank's 14.2% increase in finance applications for new vehicles alone."

Mahindra sold more than 1 000 vehicles in SA last month for the second time on the trot.

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Bakkies lead the way

Light Commercial Vehicles sales were up 9.4% last month to 12 290 units compared to February 2021. Nevertheless, consumer activity was vigorous on the passenger car dealer floor, as sales through that channel grew 27.9% during February, well ahead of market growth. Overall passenger car sales increased 22.4% to 29 563 units, with a slightly flatter performance from the rental market this month.

Read: 3 new bakkies that cost less than R10 000 per month (and they come with everything)

Toyota South Africa Motors (TSAM) recorded its most significant market share (30.4%) to date and posted its second-highest ever monthly sales total, retailing 13 458 units in February. It is TSAM's highest total sales since the coronavirus made landfall in South Africa and is only surpassed by the record aggregate of 13 694 units posted in September 2019. This is the second month in a row that TSAM has recorded a market share above 30%.

February 2022 vehicle sales in South Africa.

Supplied WesBank

Mark Dommisse, Chairperson of the National Automobile Dealers' Association, says: "It's encouraging that sales have been up for the first two months of the year compared to January and February 2021, despite the supply issues affecting most franchises.

"What is important is that the dealer channel was responsible for 84.9% of these sales, which points to growing consumer confidence despite the conflict in Ukraine, the ongoing global Covid-19 pandemic, and a continuing global shortage of semiconductors which affects the number of new vehicles produced."

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