The first quarter of 2022 produced splendid results for South Africa’s burgeoning vehicle sector, with total motor sales having increased by 21% over the first quarter of 2019 (pre-Covid). Compared with the worst pandemic quarter (between April and June 2020), total motor trade sales were 130% higher between January and March 2022 (at current prices).
At more than R16-billion, new vehicle sales in March were the highest ever, while used car sales recorded their second-highest level yet. All the other components of motor trade sales also experienced a stunning first quarter of the year, with fuel sales rather predictably coming out on top – an increase of 39% over the first quarter of 2021. Sales emanating from workshop income, accessories and convenience store sales recorded quarter-on-quarter increases of between 19% and 25%.
According to the National Association of Automobile Manufacturers of South Africa (Naamsa), the new vehicle market continued its road to recovery during the month of April 2022. Sales in the volume passenger car segment performed well, assisted mainly by ongoing strong purchases from vehicle rental companies. The latter has been necessitated by the ongoing recovery of commercial aviation activity and tourism – a clear sign that the sectors worst affected by the pandemic are coming to the party again.
A total of 67,895 new vehicles were sold in April 2022, of which 45% were for the export market. This is an increase of 9.3%, from the figure for April 2021. Export sales were even more buoyant in April, recording an increase of 16% over the figure for April 2021. It is particularly encouraging that the sterling performance of SA’s motor trade was achieved despite the flooding disaster in KwaZulu-Natal, which caused supply chain disruptions in port, rail and road traffic as well as the temporary closure of Toyota South Africa Motors.
The domestic automotive industry is nevertheless likely to continue a stop-start progression in 2022,…