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Car Sales in South Africa

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January 11th 2015 -

New vehicle sales rose 10.7% year on year in Dec 2014 to 51,461 units, data from the National Association of Automobile Manufacturers of South Africa showed. Export sales fell 1.6% to 21,833 cars.

Car sales in South Africa

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VW South Africa – 26th January, 2007.

After the container ship Napoli ran aground off the UK coast last week, VW South Africa have announced that it will be reducing its work forces working hours from 5 days per week to 4 days per week, for the next 4 weeks.

Obviously this is due to the plant at Uitenhage, near Port Elizabeth, which employs some 10,000 workers, being now unable to have enough raw materials for full scale production to occur, as the ship was carrying many VW parts on board it.

The plant produces 400 to 500 cars daily, so this reduction of man hours will now mean that they will have a loss of some 1600 to 2000 units.

DaimlerChrysler South Africa sell 40% of its shares to BEE company – 26th January, 2007.

DaimlerChrysler South Africa has today announced that it has sold a 40% stake of its company to a BEE company True Class Consortium, headed by Lot Ndlovu.

A price tag of R500 million was paid for the groups dealership company Sandown Motors.

New Car sales continue at high levels – 4th February, 2007.

Even with 3 interest rate hikes during 2006, you would have thought that consumer spending would be slowing down in South Africa. Not so if you look at the new car market, where January 2007 sales were a staggering 52,213 units. Eclipsing December 2006’s record month of car sales of 43,500 units.

Just to put this into some sort of perspective, South Africa’s December 2006 birth rate was 41,000 babies.

So we are buying more cars than people being born, quite an amazing statistic really.

Luxury car sales in January 2007 saw sales of 83 Porches, 4 Ferraris, 2 Lamborghinis and one Maserati. Cars totalled 35,819 units, light commercial vehicles sales were 14,257 units, with the remainder being trucks and coaches.

South Africa’s 2006 total vehicle sales were over 700,000.

New Speed Cameras – February 2007.

With South Africa having so many open and long stretches of road with no other vehicles on them, it is not surprising that many people speed. This is all about to change with the introduction of a new speed camera system.

Slowing down at speed cameras will no longer help you either, as these new cameras are so sophisticated that they take many pictures of every car going by them. Then many miles down the road is another camera and between the 2 of them they have already calculated how much time it should have taken you to drive between them at the legal limit.

So if you arrive at the second camera before that time, then you have obviously been speeding.

Most people obviously slow down at cameras and once past it put their foot down again.

This system will most definitely catch many more people speeding.

Number Plates running out – February, 2007.

With nearly 2,000 new cars hitting the streets every day in South Africa, there is concern that soon many provinces will be running out of new vehicle registration numbers.

It is predicted that a new system of numbering will have to be implemented by April 2007.

The best sellers during 2006 were the Toyota Corolla range, next VW Polo and Toyota Yaris.

There are many factors that are affecting the high level of car sales –
Rental companies replacing old fleets; strong South African economy, with high levels of consumer confidence; a large increase in the Black middle class that are finding they have greater purchasing power; lower car prices and low-ish interest rates; higher media marketing campaigns by car manufacturers and more affordable and flexible credit terms and loan agreements by banks.

One major addition to this in 2007 will be the Governments Taxi recapitalisation program, which is targeting over 600,000 old and unroad-worthy taxis by calling them in to be crushed and instantly replacing them with brand new taxis.

Denting this possible car sales bonanza are – possible interest rate rises reducing the amount of disposal incomes people have; vehicle prices going up due to a continued weak Rand, as well as affecting the importation prices of steel, paint and plastics and finally motor insurance premiums are set to sky rocket after the insurance industry suffered higher than expected claims during 2006.

One good factor in 2006 was that petrol prices have levelled out over a long period and are set to be that way during 2007.

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