The Automotive Business Council said that the last quarter for 2024 started very positive with the highest passenger car sales month since October 2019.
This is encouraging for the medium-term new vehicle market outlook.
Mikel Mabasa, naamsa CEO said that total domestic new vehicle sales in October 2024, at 47,942 units, reflected an increase of 2,506 units or 5,5% from the 45,418 vehicles sold in October 2023.
Export sales decreased by a humongous 17,324 units, or 42,6%, to 23,342 units in October 2024 compared to the 40,666 vehicles exported in October 2023.
Despite the poor export performance for October 2024, the new passenger car market at 34,228 units still registered an increase of 14,5% compared to new cars sold in October 2023. Very interesting is to see that the Car rental industry sales accounted for a sound 19,8% of new passenger vehicles sales during the month, Mabasa said.
Domestic sales of new light commercial vehicles, bakkies and mini-buses also decreased by 12,7%, comparing to October 2023.
Sales for medium and heavy truck segments of the industry reflected a weak performance in October 2024. With medium commercial vehicles at 718 units and heavies at 2,187 units respectively, a decrease of 81 medium units, (10,1%) and in the case of heavy trucks and buses a decrease of 168 vehicles (7,1%) compared to the corresponding month last year.
Amazing to see that FAW yet again sold the most commercial vehicles for October at 418 units with Daimler Truck South Africa second at 415 units!
Fuel price hike expected
Due to higher oil prices as a result of the ongoing war in the Middle East and a weaker rand for October, we can expect an increase in petrol, diesel and paraffine prices averaging around 20 cents per litre across the board.
Below is a good indication of what we can expect for the month:
• Petrol 93: increase of 14 cents per litre
• Petrol 95: increase of 26 cents per litre
• Diesel 0.05% (wholesale): increase of 21 cents per litre
• Diesel 0.005% (wholesale): increase of 20 cents per litre
• Illuminating paraffin: increase of 21 cents per litre
New Bullet Train from Gauteng to Limpopo
Plans for a high-speed rail line between Gauteng and Limpopo are gathering momentum with officials from both provinces actively working together to finalise the project.
Recent developments include productive discussions between Gauteng Premier Panyaza Lesuf and Limpopo Premier Phophi Ramathuba, who are dedicated to bringing this project to life. The project has been formally approved for implementation, and as part of South Africa’s National Rail Masterplan, the goal is to be completed by the end of 2025. For travelers, commuters, and businesses alike, this bullet train represents an exciting and first world future in mobility for South Africa.
Transnet is responsible for business closures
Transporters responsible for container movement at the Port of Cape Town are complaining about what fellow transporters at the Port of Durban continue to complain about. That is all about Transnet’s truck slot booking and favouring of other modes of transport that are putting them out of business.
According to Derick Ongansie, director at the South Africa Transporters’ Alliance, at least three harbour carrier companies have gone out of business since the state-owned company (SOC) responsible for logistics introduced a truck booking system meant to control access to port terminals. Despite continuous stakeholder engagements since 2019, little to no improvement happened in port operations that benefit transporters.
Equipment consistently breaking, and the lack of recovery from frequent weather-bound operational shutdowns meant poor performance was undermining the business interests of road freight operators.
Ongansie also added that there is favouritism by Transnet, that is severely impacting transporters and the industry as a whole. Many transport companies, large and small, are suffering the consequences of this action.
Another company that has just been liquidated as a result of this mismanagement by Transnet is Containers Domestic Services, a company that has operated for 30 years in the Port of Cape Town. Each day transporters are announcing the sale of their equipment on social media as they exit the industry for good.
Transnet has since said: “The custodians of the information are looking into this.”
In closing I would like to once again thank and compliment Naamsa for accurate and on time reporting, as well as Bussinestech for valuable logistical information and news!
As we’re approaching year end, let’s all make the best of the November, the last full production month in the Commercial Vehicle Sales sector!
-Cobus Lourens-
