NADA Comment: “Perfect Storm” takes a heavy toll on the South African Motor Industry

The month of July saw the South African economy being hit by the ‘perfect storm’ and the impact on the motor industry was huge,” commented Mark Dommisse, the Chairperson of the National Automobile Dealers’ Association (NADA), after studying the latest vehicle retail sales figures distributed by naamsa.

“The effect is not limited to July and will in all likelihood have an ongoing negative effect for several months to come. Dealers face stock shortages while local manufacturers battle to keep production going due to disruptions in the component supply chain caused by global semi-conductor shortages and the cyber-attack on the port operating systems, disruptions in KwaZulu-Natal and parts of Gauteng as well as the reimposition of Level 4 Lockdown,” Dommisse explained.

“However, the sales figures are certainly not as bad as we had feared, with the aggregate total sales in July of 32 949 units being slightly better – 1.7% up – than the situation a year ago. Dealers also did well again, being responsible for an estimated 86% of sales, with rental companies taking an encouraging 9.2%, while 2.7% of sales went to industry corporate fleets and 2.1% to government. On a year-to-date basis our total sales after seven months of 2021 stand at 260 466 units, which is 33.7% higher than at the same time last year, which is heartening.

“Another blow for the industry at the end of the month, was the passing of Dr Johan van Zyl, Executive Chairman of Toyota SA Motors. It is fortunate that during his life he had the satisfaction of knowing the high esteem in which he was held by his colleagues and the broader industry. His inspiring leadership has created a company with an enviable reputation both in South Africa and abroad. As we reflect on the high standards he advocated, we are reminded of the many benefits dealers, as well as the broader automotive ecosystem, have enjoyed. He was a true inspiration to many who had the privilege to know and work with him,” added the NADA Chairperson.

NADA is a proud constituent association of the Retail Motor Industry Organisation (RMI).