naamsa releases November 2021 New Vehicle Stats

Reflecting on the New Vehicle Sales statistics for the month of November 2021 naamsa said that despite persistent economic and COVID19 fuelled challenges, the new vehicle market showed some resilience as its gradual recovery continued during the month. Aggregate domestic new vehicle sales in November 2021, at 41 588 units, reflected an increase of 2 573 units, or 6,6%, from the 39 015 vehicles sold in November 2020. Export sales recorded a further decline of 14 277 units, or 42,2%, to 19 548 units in November 2021compared to the 33 825 vehicles exported in November 2020. Overall, out of the total reported industry sales of 41 588 vehicles, an estimated 35 014 units, or 84,2%, represented dealer sales, an estimated 11,5% represented sales to the vehicle rental industry, 2,4% sales to government, and 1,9% to industry corporate fleets.

The November 2021 new passenger car market at 27 828 units had registered an increase of 2 386 cars, or a gain of 9,4%, compared to the 25 442 new cars sold in November 2020. The car rental industry supported the new passenger car market during the month and accounted for a sound 15,6% of car sales in November 2021. Domestic sales of new light commercial vehicles, bakkies and mini-buses at 11 156 units during November 2021 had recorded a decline of 90 units, or a fall of 0,8%, from the 11 246 light commercial vehicles sold during November 2020. Sales for medium and heavy truck segments of the industry reflected a good performance and at 779 units and 1 825 units, respectively, showed an increase of 141 units, or 22,1% in the case of medium commercial vehicles, and, in the case of heavy trucks and buses an increase of 136 vehicles, or a gain of 8,1%, compared to the corresponding month last year.

The November 2021 exports sales number at 19 548 units reflected a massive fall of 14 277 vehicles, or 42,2%, compared to the 33 825 vehicles exported in November 2020. For the year-to-date, vehicle exports were still 8,3% ahead of the same period last year.

Despite several challenges during the month, including the first interest rate hike in three years, sustained load-shedding, and a new Omicron Covid-19 variant that has sparked global alarm, the new vehicle market continued to show resilience on its gradual recovery path during the month. The rental companies supported passenger car sales over recent months, but the travel bans imposed on South Africa due to the Omicron variant could unfortunately once again negate the support received by the market via this channel. With the added inflationary pressures of the record-high fuel prices and prospects of further interest rate increases, businesses and consumers will undoubtedly remain under financial pressure. The November ABSA Purchasing Managers’ Index (PMI) reflected a more than 5-point decline for the index measuring expected business conditions highlighting that the economy remains fragile as the pace of economic recovery is expected to slow down substantially in 2022.

Vehicle exports continued their five-month downward trajectory in line with the ongoing Covid-19 related supply chain disruptions impacting on vehicle production and exports as well as the impact of a severe Covid- 19 fourth wave in parts of Europe, a key export market for domestic vehicle manufacturers. Prospects over the short to medium term, however, remain positive as vehicle exports are anticipated to benefit from various new model introductions by major vehicle exporters in 2021 and 2022 as well as increased demand linked to the favourable economic conditions abroad.