best selling cars in South Africa august 2023
HAVING defied the odds so far this year, South African new vehicle sales faltered last month as economic realities took their toll.
According to Naamsa - The Automotive Business Council - new vehicle sales declined by 3,1% in August, versus the same month last year.
"The resilience of the South African retail motor industry in 2023 continues to astound us, but we knew there had to be a tipping point, and this is what happened in August," said Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA).
Passenger cars saw the largest decline, at 6.7% year-on-year, while bakkies and other light commercial vehicles gained 2.7% versus August 2022, while medium and heavy trucks saw respective gains of 0.3% and 10.4%.
While the Toyota Hilux was the country’s top-selling bakkie last month, with 3,309 sales, the Ford Ranger also enjoyed a robust month with 2,367 units finding homes. The Isuzu D-Max (1,632), Nissan NP200 (1,064) and Mahindra Pik-Up (701) completed the bakkie top five.
On the passenger car front, The Volkswagen Polo Vivo took top honours with 2,452 sales, albeit with almost half of those going into rental fleets, while the Toyota Corolla Cross was runner up with an impressive volume of 2,130. Last month also saw a budget hatchback tussle between the Toyota Starlet (1,372) and Suzuki Swift (1,349).
TOP 50: AUGUST 2023
While the car market as a whole came under pressure last month, the rental industry did lend some support, accounting for 16.2% of passenger vehicle sales.
The rental industry snapped up 974 Polo Vivos in August, and other popular sellers to the sector were the Toyota Starlet (397), Kia Sonet (367), Renault Kwid (337), Suzuki Swift (318), Suzuki Ciaz (311) and Toyota Corolla Quest (205).
The rental industry accounted for 12.2% of overall vehicle sales, if you add the commercial vehicles, while dealer channels accounted for the vast majority of sales at 83.8%.
Naamsa said the weak performance of the car market was a symptom of the rising cost of living that consumers are facing, which leads to lower disposable income and weighs on consumer sentiment overall.
While easing inflation, with CPI now falling within the 3% to 6% target band, has been providing some relief, September’s massive fuel price hikes are likely to weigh the market down further.
Either way, it appears that downsizing is becoming a reality in the modern motor industry, as NADA head Brandon Cohen points out, while luxury vehicle brands continue to feel strain.
"I believe we need to be realistic. We must acknowledge that the current economic conditions are very challenging, although there is still demand, albeit under pressure,” Cohen said.
“Fortunately, the financial institutions have not ceased funding as they did during the global financial crisis, and mobility remains essential for most South Africans.
“Therefore, there are generous special offers and other incentives in the market for consumers, while interest rates appear to be stable and unlikely to rise further," Cohen concluded.
IOL Motoring
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