South Africa's November New Car Sales Increase By 12.5%

According to foreign media reports, the latest data released by the National Association of Automobile Manufacturers of South Africa (Naamsa) shows that in November this year, new car sales in South Africa increased by 12.5% to 54,896 units, achieving year-on-year growth for the 14th consecutive month. This also marks the 5th consecutive month that the South African automotive industry has surpassed the 50,000 sales threshold. However, compared to the record high sales peak in October this year, new car sales in South Africa declined by 1.9% month-on-month in November.

The South African Automotive Industry Association stated that South Africa has received a credit rating upgrade for the first time in nearly twenty years. Subsequently, the domestic inflation level has eased, fuel prices have been significantly reduced, and the interest rate environment has become more accommodative. The country's sovereign risk situation has also continuously improved, all of which have contributed to the growth of new vehicle sales in South Africa in November. However, the association also noted that due to weak global demand and renewed geopolitical tensions, South Africa's vehicle exports decreased by 3.9% year-on-year in the same month, falling to 35,848 units.

Image Source: Toyota South Africa

The association revealed that among the domestic total sales of 54,896 vehicles in November, about 79.6% were sold through dealer channels; sales to the new car leasing industry still accounted for a high 16.3%; approximately 2.4% were government purchases, and 1.7% were sold to corporate fleets.

During the same period, the sales of passenger cars in the South African market increased by 11% year-on-year, reaching 39,158 units. The leasing channel played a key role in driving passenger car sales (accounting for 21.2%), reflecting that the South African automotive industry is actively responding to the "holiday travel peak demand." Meanwhile, domestic sales of light commercial vehicles in South Africa increased by 20.5% year-on-year, reaching 13,048 units.

Lebo Gaoaketse, the Market and Communication Director of South African automotive finance and insurance institution WesBank, stated that the local new car market continues the tradition of showing strong performance before the festive season, delivering robust results once again last month.

He further explained, "The car sales performance in South Africa in November reflects the market's positive response to the favorable economic environment. The decline in inflation, reduction in fuel prices, coupled with the first interest rate cut since the implementation of South Africa's revised 3.0% inflation target, have made household budget planning in the country more predictable. This stability has started to manifest in people's travel consumption decisions."

Brandon Cohen, head of the National Automobile Dealers' Association (NADA) in South Africa, stated that the country's automotive industry once again proves that sales forecasts are "more of an art than a science." He noted that almost no industry analysts were able to predict the strong sales surge that the market would experience in the second half of the year.

He also added, "Chinese and Indian car manufacturers have launched several affordable models, and their aggressive marketing has played a key role in boosting automotive retail sales in South Africa. At the same time, the rental industry is also an important growth area. With a large influx of international tourists expected, car rental companies are actively expanding their fleets ahead of the holiday season, with their sales accounting for 16.3% of the overall market and as high as 21.2% in the passenger car market."

In terms of brands, Toyota South Africa Motors (including Lexus and Hino brands) once again claimed the title of the best-selling automobile company in South Africa for November. This result is not surprising, as its market share reached 24.7%. Toyota's sales in South Africa for the month were 13,576 vehicles, a slight increase of 0.1% month-on-month, marking the second highest sales figure of the year, second only to the sales performance in September.

Suzuki South Africa set a new sales record in October, but in November, sales fell by 7.3% month-on-month to 6,385 units, yet it still firmly held the position of the second-best sales for the year. The third-ranked Volkswagen sold 6,044 units that month, a decrease of 2.8% from the previous month, narrowing the gap with Suzuki South Africa's sales.

During the same period, Ford South Africa's sales increased by 5.1% month-on-month, closing at 3,095 units. This marks the third time this year that the brand has exceeded 3,000 units in South Africa, resulting in an upward ranking to fourth place. Hyundai South Africa's sales were 3,051 units, trailing Ford by just 44 units; despite a slight increase of 1.1% compared to October, its ranking fell one position to fifth.

In November, sales for China’s Great Wall Motors South Africa fell by 9.7% month-on-month to 2,534 units, yet it maintained its sixth place position. Another Chinese brand, Chery South Africa, saw sales increase by 13.4% month-on-month to 2,506 units, not only setting a historical sales record but also breaking the record it set in September this year. Its market share reached 4.6%, with its ranking rising to seventh place.

Image source: Great Wall Motor South Africa Company

Isuzu South Africa's sales ranking dropped one place to eighth, with a significant month-on-month decline of 23.7% in November, totaling 2,124 units, making it the brand with the largest drop among the top ten car companies in South Africa. During the same period, Kia South Africa's sales reached 1,828 units, marking a month-on-month increase of 1.1%, maintaining its position at ninth. Renault South Africa's sales for the month were 1,415 units, a month-on-month decrease of 2.1%, but it has returned to the top ten sales list.

Chery's Omoda & Jaecoo brand narrowly missed the top ten in November sales. The brand's monthly sales increased by 7.4% month-on-month, reaching 1,408 units, setting a new monthly sales record for the brand. Mahindra South Africa's sales were 1,403 units, just 5 units behind the former, but due to a 9.5% month-on-month decline in sales, its ranking dropped two places to twelfth.

Cohen from the National Automobile Dealers' Association of South Africa pointed out that as residents' ability to pay for cars increases and the credit environment becomes more relaxed, the approval rate for automotive financing in South Africa has shown "significant improvement." He concluded: "With the current South African economic environment continuously improving, combined with the stimulus of year-end car purchase discounts, it is expected that this December South Africa will once again achieve strong growth in monthly car sales, potentially reaching one of the highest annual total sales levels in the past decade."