New vehicle sales for January have started the year off on a positive note, continuing the gradual recovery path to pre-Covid-19 levels, according to the latest statistics released by the Automotive Business Council (Naamsa).
Aggregate domestic new vehicle sales, at 41 382 units, reflected an increase of 6 743 units, or 19 5%, compared to 2021’s 34 639 vehicles.
There was a mixed performance in the medium and heavy truck segments, and at 465 units and 1 251 units respectively, there was a decline of 21 units, or 4.3% in the case of medium commercial vehicles and, in the case of heavy trucks and buses, an increase of 110 vehicles, or a gain of 9.6%. Export sales were however down by 1 962 units, or 9.3%, to 19 089 units in January this year compared to last year’s 21 051.
Although the momentum on the vehicle export side at present is downwards, Naamsa expects it to gain traction during the year on the back of further new model introductions by major vehicle exporters, as well as a favourable global economic outlook.
In line with the moderate economic growth forecast for the country for 2022, Naamsa believes the new vehicle market will continue its gradual recovery to pre-Covid-19 levels, but at a slower pace.
“Prospects for vehicle exports for 2022, although declining during the month, remain positive in line with favourable economic and market conditions abroad as well as on the back of further new model introductions by major vehicle exporters in the country in 2022. Vehicle exports, the lifeblood of the domestic OEMs, are important to the viability of the South African automotive industry, as exporting remains key to generating sufficient economies of scale and to achieving improved international competitiveness.”
