[imagesource: Getty Images / iStock]
It makes sense that the used car market in South Africa has been doing well lately, with an increase in demand as supply chain issues disrupt the making and importing of new cars.
So how are new-vehicle sales doing at present?
In the past month alone (the entirety of March), new-vehicle sales have soared, with a total of 50 607 new cars, light commercials, and trucks sold.
That’s according to the Naamsa automotive business council, which further stipulated that is an increase of 7 184 units, or 16,5%, from the 43 423 vehicles sold in March 2021.
That’s quite a big jump, and one that Naamsa said exceeded expectations in becoming the highest monthly sales total since pre-pandemic October 2019, reported Business Day.
However, as we move forward, the new market will be negatively affected by increasing inflation risks, continuous record fuel prices, low to no economic growth, and an escalating interest rate cycle.
Great.
Not to mention how the war in Ukraine will continue to leave ripple effects on the supply chain and worldwide car market.
Because supplies of wiring harnesses come from Ukraine, Audi, Porsche, BMW, and Mercedes-Benz have been forced to slow down production in Germany as they are not able to get access to the supplies.
Obviously, those are secondary concerns after the human lives lost and affected by the tragic circumstances in Ukraine and Russia.
As it stands, Toyota is still a market leader, along with VW – two brands that dominated the top five selling new cars in South Africa for the month of March:
1. Toyota Hilux – 4 561
2. Toyota Corolla Cross – 2 384
3. VW Polo Vivo – 2 117
4. Toyota Hi-Ace – 1 644
5. VW Polo – 1 430
Toyota sold 15 008 units overall, while Volkswagen was second with 6 433 sales.
Other brands in the top 10 included Hyundai (3 816), Suzuki (3 347), Nissan (3 132), Renault (2 600), Ford (2 235), Kia (1 910), and Isuzu (1 723).
[source:businessday]
