New-vehicle sales have finally moved into positive territory following eight gruelling months of decline.

Not all market segments experienced growth, however.

Overall, the total new-vehicle market in April gained 2.2%, to reach 38 172 units, compared with the same month last year.

The new passenger car market reached 25 972 units – a 6.1% increase on the same month last year.

April medium-truck sales expanded by 5.9%, reaching 590 units, while heavy-truck and bus sales were up 14%, to 1 964 units.

However, the sale of new bakkies, vans and minibus taxis dropped by 9%, to 9 646 units.

New-vehicle exports from South Africa also failed to deliver, declining by a massive 23.9%, to 23 394 units.

For the first four months of 2024 exports were now 9.1% below the corresponding quarter last year.

Naamsa | The Automotive Business Council says the current composition of the domestic new-vehicle market is indicative of a tough economy, with less expensive, smaller cars, sports-utility vehicles and crossovers, as well as light commercial vehicles, growing in popularity.

“After the upcoming May national elections and once the interest-rate cutting cycle commences – likely during the second half of the year – prospects for the new-vehicle market are anticipated to improve,” notes the industry body.

National Automobile Dealers’ Association (NADA) chairperson Brandon Cohen says April’s uptick is “particularly significant given the eight consecutive months of sales decline that preceded it, marking a promising development for the industry”.

He also emphasises the resilience of this performance, especially when considering that April precedes the general election in May – an event causing apprehension among many potential buyers.

Vehicle finance group WesBank warns, however, that April sales may be nothing more than a fleeting blip on the sales chart.

“Any comparisons year-on-year must consider the number of selling days during April,” says WesBank marketing and communications head Lebo Gaoaketse.

Easter fell in March this year, but in April last year.

“This means April 2024 sales were earned in 21 selling days, with three sales days less – 18 – in April 2023.”

“Elections at the end of this month will undoubtedly impact May sales, providing an overall challenging picture for the first half of the year,” adds Gaoaketse.

“However, we continue to expect raised levels of activity during the second half, despite the headwinds facing consumers and businesses alike.”

Suzuki Moves into Number Two
The top-selling positions in South Africa’s new-vehicle market traditionally belong to the local manufacturers – Toyota, Volkswagen, Ford.

However, small-car specialist and importer Suzuki has been threatening to upset this long-standing order for the last two to three years, especially as the Korean threat seems to be fading.

In April, Suzuki finally managed to swoop into second place in the total new-vehicle market, beating Volkswagen Group Africa by more than 100 vehicles.

Toyota remains in top spot by a comfortable margin.

Suzuki and its dealers in April delivered 4 891 vehicles to South African customers for a 35% increase in its sales performance compared with the same month last year.

“New vehicle sales remain under pressure,” comments Suzuki Auto South Africa sales and marketing GM Henno Havenga.

“Customers are definitely feeling the squeeze of high interest rates, high fuel prices and the rising cost of living, and they are holding back on buying durable goods like cars and pick-ups.

“Our experience shows that those who do purchase a new car are looking for the best possible price and lowest running cost, and that has definitely favoured Suzuki Auto’s refreshed range of vehicles.”