NADA Newsletter | The Dealers’ Voice

Welcome to the first issue of The Dealers’ Voice for 2022. We wish you every success for this coming year and are looking forward to working with you, our valued members, in helping our industry weather the aftermath of this incredibly challenging pandemic.

January’s sales figures clearly demonstrate that the South African motor industry remains buoyant despite the disappointing state of the local economy. Total vehicle sales in January of 41 382 units showed a 19.5% increase over sales in the corresponding month a year ago. Franchised dealers were responsible for 84.2% of these sales, which provided a flying start to a year that promises to build on the upward trend experienced in 2021.

What is amazing is that these heartening figures were delivered despite shortages of some models due to ongoing component shortages, particularly semiconductors, which are likely to be with us for most of this year.

It was an interesting result in January, in that we saw better new car stock availability than in recent months, but with lower stocking levels of good used cars. However, this month should not be seen in isolation, and we need to monitor the new car versus used car situation in the months ahead to see the actual trend.

We are particularly glad to see the substantial year-on-year growth of 26.5% in January passenger car sales signalling improving consumer and business confidence, which are critical for growth in our industry. Commercial vehicle sales were lagging in January, but we believe the situation will improve in coming months.

The upward movement in interest rates and the fuel price will affect passenger car sales more than sales of commercial vehicles. The increase in interest rate is predicted to be as much as 1,5% in 2022, which is significant in a country where consumers have more debt exposure than in previous years and interest rate hikes put added strain on disposable income.

These increases will obviously have some impact on the market in 2022, but, generally, the outlook is brighter than at the same stage last year when lockdown regulations were more stringent.

This strong performance in times of adversity underlines the resilience and determination to succeed that exists in the local retail motor business.

We are, of course, grateful for the continuing support from our customer bases, which also indicated economic activity starting to move in the right direction.

We, as NADA, will continue to ensure our retail dealerships are treated fairly and not prejudiced by any new laws and regulations, while providing you, our valued members, with all the information and opportunities you require to grow and succeed in 2022.

We continue to stress the importance of getting fully vaccinated, and encourage our members to do their utmost to do the same within their personal and work environments. The pandemic isn’t over, albeit that the numbers are down and the restrictions aren’t as stringent.

Please continue to apply all the necessary Covid mitigation protocols within the dealership. Be safe, as we work towards recovery and grow in these rapidly developing times.