More than 61 000 new vehicles were sold during the month, up 12.7% from a year earlier, according to data from the National Association of Automobile Manufacturers of South Africa. The performance marked two years of uninterrupted growth and pushed monthly sales above 60 000 units for the first time in several years.
Cars.co.za Chief Innovation and Product Officer Alan Quinn said the figures were impressive, but somewhat unexpected given the state of the broader economy.
“It is fantastic news,” Quinn told Channel Africa, adding that closer examination showed Toyota and Suzuki were among the biggest beneficiaries of the growth.
“There’s a lot of talk in the industry. All anyone wants to talk about is new brands that come in, particularly from China. But when you actually look at the data, it’s the quiet guys who sit in the background that are really killing it, and that’s Toyota and Suzuki.”
Quinn attributed some of the success to affordable vehicles manufactured in India and imported into SA, including models such as the Toyota Starlet and Urban Cruiser and the Suzuki Grand Vitara.
Price remains a critical factor in the market, with vehicles costing less than R400 000 recording significantly stronger demand than premium models, Quinn said.
Chinese manufacturers have nevertheless made significant inroads. Quinn said Chery’s sales were spread among Chery, Omoda and Jaecoo, while Great Wall Motor operates several brands, including GWM, Haval and Tank. Combining sales across those brands gives the Chinese groups substantially larger market shares than individual brand rankings suggest.
SA’s domestic automotive manufacturing industry also remains important to the economy, with Toyota producing the Hilux and Corolla Cross in Durban, Ford manufacturing the Ranger and BMW producing the X3 in Pretoria.
However, Quinn backed concerns from trade unions that rising imports could put local manufacturing jobs under pressure.
“The unions are right to be worried about that,” Quinn said. “If you’re going to profit out of our country, you should also invest and give back.”
Despite September’s strong figures, Quinn cautioned against expecting sales above 60 000 every month, pointing to subdued economic conditions.
“I would be surprised if next month was above 60 000,” Quinn said, predicting that the market would remain broadly flat for the rest of the year.
–ChannelAfrica–
