Overview of New Vehicle Sales for December 2024
According to a press release by Naamsa, new vehicle sales for December 2024 registered a third consecutive year-on-year increase with new vehicle sales at 41,273 units compared to the total new vehicle sales of 40,262 units for December 2023.
Sales of medium commercial vehicles increased by 7,6% while heavy commercial vehicles and buses decreased by 11,8% comparing to the corresponding month in 2023.
Vehicle export sales for December 2024 continued a downward performance at 25,931 units compared to the 27,089 vehicles exported during December 2023.
Reasons for the decline in exports are amongst others, a slowdown in demand in the EU, (the automotive industry’s key export region) due to low economic growth, stricter emission rules, and competition from cheaper electric vehicle imports from China.
Looking back at the new vehicle sales market for 2024, it was a year with disruptions as a result of National voting and the uncertainties around it, as well as a plummeting export market. The new vehicle sales market also experienced a significant change with Chinese brands, offering products on passenger and commercial vehicles at the more affordable end of the pricing spectrum.
Although, it is significant that two out of every three vehicles manufactured in South Africa are for export.
Motoring
Big change in car brands that hold their value in South Africa:
Indian and Chinese manufactured cars are hugely affecting the South African automotive market with the affordability factor and value retention. (future value)
Cars manufactured on the South Asian sub-continent with brands like Suzuki and Toyota, and French multinational auto manufacturer Renault are set to outshine other manufacturers in terms of holding their value.
This trend is particularly in the sub R300,000 segment, which has become a focal point of the market.
Cars produced on the South Asian subcontinent accounted for an impressive 70% of the 108,000 light vehicles sold in South Africa for under R300,000.
This segment was dominated by Suzuki with a 43% share, followed by Renault at 19% and Toyota at 17%.
Residual value forecasting of these vehicles, are predicted at 86% for 2025.
For example, a car purchased for R300,000 in this category would still be worth approximately R258,000 after a year, assuming average mileage and maintenance.
As economic pressures persist, cars that are reasonable priced and keep strong resale values are likely to stay in demand.
Energy
Another nail in the coffin for load shedding in South Africa:
Eskom has successfully synchronised Unit 2 of the Koeberg Nuclear Power Station in Cape Town to the national grid as part of their Long-Term Operation (LTO) programme.
The National Nuclear Regulator (NNR) will decide on the extension of Unit 2’s operational license in 2025. This comes after the successful renewal of Unit 1’s license, which was extended for operation until 2044. Load shedding has almost disappeared in South Africa, with Eskom not needing to pull the trigger on scheduled national blackouts for over nine months.
South Africa has had more than 275 consecutive days without implementing load shedding since 26 March 2024.
As South Africa phases out some of the old coal power plants by 2030, nuclear energy is aimed to provide a reliable and stable replacement supply.
In closing, once again credit and thanks to Bussinestech for valuable information and also Naamsa for their sales statistics!
This year is also the 90th anniversary for Naamsa!! Congratulations from CLC Trucks!
– Cobus Lourens –
