Naamsa sales statistics
Sales statistics for new vehicles released by Naamsa showed that the positive July 2024 new vehicle market performance could unfortunately not maintain through to August.
Overall 43 588 new vehicles were sold in August 2024, reflecting a decrease of 2 266 units, or a loss of 4,9%, comparing to vehicles sold in August 2023. Export sales, for a second consecutive month decreased by 14 658 units, a whopping 34,3%, comparing to August 2023.
Interesting fact is that the car rental sales accounted for a sound 16,7% of total domestic new passenger vehicle sales during the month.
Truck sales for medium and heavies reflected a mixed performance in August 2024.
748 Medium trucks were sold for August 24 which is an increase of 56 units comparing to the same period last year. As far as Heavy trucks and busses are concerned, 2 109 units were sold in August comparing to the 2 381 units sold in the corresponding month last year, a 11,4% decrease.
What came as a big surprise to me is the fact that the Chinese manufacturer FAW was the top selling Truck in South Africa for August ‘24 with 397 trucks versus the 394 trucks sold by Daimler Trucks South Africa over the corresponding month!
Another fuel price cut announced
The Department of Petroleum and Mineral Resources has published the official fuel price adjustments as of Wednesday, 4 September 2024.
The stable global oil price and a stronger rand against the dollar, led to a sizeable cut for petrol and diesel prices coming down by 92 cents per litre for petrol and between 79 and 105 cents per litre for diesel.
Good news for interest rates in South Africa
The South African Reserve Bank (SARB) is expected to cut interest rates in September. (Since 2021 the SARB has raised interest rates by 475 basis points.)
One of the contributing factors in the expected rate cut is the stronger rand after the formation of the Government of National Unity between the ANC, DA, IFP, PA, FF Plus, UDM, Rise Mzansi, Al Jama-Ah, UDM, and PAC.
The USA is also expected to start cutting interest rates in September after a decrease in job numbers lead to fears of a recession. This should give the South African Central bank further scope to cut rates without impacting the rand.
Eskom says permanent end of load-shedding is close.
On 24 August 2024, Eskom announced that South Africa had gone 150 consecutive days without any planned power outages.
Eskom says its continued improved performance, combined with the 2,500MW expected to be added to the grid by March 2025, will guarantee the end of load-shedding, except in “exceptional circumstances.”
The story of the turnaround in the performance of South Africa’s electricity sector is an example of the potential of new ways to problem-solving.
With the private sector’s inclusion in electricity generation, billions are being invested in new renewable energy plants, adding significant capacity to the grid.
Busiswe Mavuso, CEO of (BLSA) Business Leadership South Africa said that the partnership between business and government has enabled private sector expertise to support Eskom in improving plant performance, all in line with the Energy Action Plan,” she added.
In closing I would like to thank Naamsa for on-time and accurate reporting as well as Businesstech for valuable business news!
May you all enjoy a “springfull” September with lots of sales and many tons of “load-shifting”!!
– Cobus Lourens –
