July 2024 sees a rise in car sales, but exports face declines

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Naamsa | The Automotive Business Council said that the welcomed uptick in the July 2024 aggregate new vehicle sales figures could be the turning point for an improved second half-of-the-year performance.

Export sales, however, decreased by 12,671 units, or 33,2%, to 25,461 units in July 2024 compared to the 38,132 vehicles exported in July 2023.

Overall, out of the total reported industry sales of 44,229 vehicles, an estimated 35,853 units, or 81.1%, represented dealer sales. An estimated 13.5% represented sales to the vehicle rental industry, while 2.9% accounted for sales to other segments.

The sales for medium and heavy truck segments of the industry performed weaker in July 2024. Medium commercial vehicles recorded 641 units, a decrease of 45 units, or 6.6%, from the 686 units sold in July 2023.

Heavy trucks and buses recorded 2,100 units, a decrease of 80 vehicles, or 3.7%, compared to the 2,180 units sold in the corresponding month last year.

The July 2024 export sales at 25,461 units reflected a decrease of 12,671 vehicles, or a loss of 33,2%, compared to the 38,132 vehicles exported in July 2023. For the year to date, vehicle exports were now 13,5% below the corresponding period 2023. government, and 2,5% to industry corporate fleets.

The July 2024 new passenger car market at 29,934 units had registered an increase of 1,894 cars, or a gain of 6,8%, compared to the 28,040 new cars sold in July 2023.

Car rental sales accounted for a sound 17,1% of new passenger vehicle sales during the month.

Domestic sales of new light commercial vehicles, bakkies and mini-buses at 11,554 units during July 2024 had recorded a decrease of 1,112 units, or a loss of 8,8%, from the 12,666 light commercial vehicles sold during July 2023.

"Vehicle exports reflected a substantial decrease during the month compared to the correspondingly high monthly base level 2023. Adverse weather conditions during the month as well as declining exports to Europe, the domestic automotive industry’s top export region contributed to the weaker performance for the year to date.

The Eurozone GDP grew by only 0,3% during the second quarter 2024 with Germany’s GDP contracting by 0,1%. The direction and performance of vehicle exports for the balance of 2024 will remain linked to central banks’ gradual monetary easing in major markets," said Naamsa.