Motoring News

SA national auto sales take leap with Spring

CAPE TOWN, South Africa: South Africa’s retail motor dealers fared better than expected through September 2021 with overall new vehicle sales of 43 130 units 15.8% better than the 37 237 sold in the same month a year earlier.

The data came from Mark Dommisse, chairman of the National Automobile Dealers’ Association, after analysis of figures distributed by the Automotive Business Council on October 1.

MARK DOMMISSE: Chairman of the National Automobile Dealers’ Association

”With such volumes,” Dommisse added, ”our industry can expect to end 2021 at the high end of analysts’ forecasts – and it was heartening to note that 82.7% of the total new vehicle volume was sold through retailers.


”The 1506 unit growth month-on-month is encouraging; the majority increase in passenger vehicle sales is also a positive sign as the largest volume segment.”

Dommisse added that a healthy contribution of 12.4% to the rental industry boded well for the future supply of vehicles to the used-vehicle market where stock is in short supply.

This segment of the market, he said, had recently seen a resurgence in buying since de-fleeting drastically in 2020 after the global pandemic hit South Africa.

READ MORE NADA features here

“Used-car values should continue to hold at higher-than-expected levels so long as there is a new-vehicle stock shortage. Fortunately for dealers, the strong demand for used has mitigated some of the losses in new-vehicle sales, due largely to the global shortage of microprocessors.

“The effect of the ongoing microchip shortage resulted in more brands experiencing stock shortages through September. There is stock, but not in the best model mix, which is affecting dealers’ ability to supply models customers want. However, despite the lack of semi-conductor chips affecting supply, manufacturers have worked extremely hard to supply stock to the market.”


There was, however, some unwelcome news: the situation was unlikely to improve significantly through the coming 12-18 months. It had already cost the global motor industry an estimated US$210-billion as many manufacturing plants had had to either close or run at low output levels.

*NADA is a constituent association of the Retail Motor Industry Organisation.

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