Election jitters hit May 2024 vehicle sales hard: All the stats

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Aggregate domestic new vehicle sales in May 2024, at 37,105 units, reflected a substantial decrease of 6,137 units, or a loss of 14,2%, from the 43,242 vehicles sold in May 2023.

Export sales also recorded a substantial decrease of 5,712 units, or 19,1%, to 24,235 units in May 2024 compared to the 29,947 vehicles exported in May 2023.

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Overall, out of the total reported industry sales of 37,105 vehicles, an estimated 33,191 units, or 89,4%, represented dealer sales, an estimated 4,5% represented sales to the vehicle rental industry, 3,1% to industry corporate fleets, and 3,0% to government.

The May 2024 new passenger car market at 24,367 units had registered a decrease of 3,212 cars, or a loss of 11,7%, compared to the 27,579 new cars sold in May 2023.

Car rental sales accounted for 5,7% of new passenger vehicle sales during the month.

Domestic sales of new light commercial vehicles, bakkies and mini-buses at 10,334 units during May 2024 had recorded a decrease of 2,498 units, or a loss of 19,5%, from the 12,832 light commercial vehicles sold during May 2023.

The high lending rate combined with high inflation and relatively lower household income, will continue to negatively impact the new vehicle market.

Sales for medium and heavy truck segments of the industry reflected an overall weak performance for May 2024 at 533 units and 1,871 units, respectively, which is a decrease of 42 units, or 7,3% from the 575 units sold in May 2023.

In the case of medium commercial vehicles, and, in the case of heavy trucks and buses a decrease of 385 vehicles, or 17,1%, compared to the 2,256 units sold in the corresponding month last year.

The May 2024 export sales number at 24,235 units reflected a decrease of 5,712 vehicles, or 19,1%, compared to the 29,947 vehicles exported in May 2023. For the first five months of 2024, exports were now 11,6% below the corresponding period 2023.

Vehicle exports continued to decline due to the sluggish global economic recovery.

The US inflation rate has remained benign over recent months which could result in an easing of interest rates later in the year.

This could also result in other central banks commencing with interest rate cuts, which would support South African vehicle exports.

"The positive performance in the new vehicle market during April 2024 was short-lived as national election jitters likely put a hold on purchases of big-ticket items such as vehicles, along with an additional public holiday during the month, " says Naamsa.