How many cars were sold in South Africa in 2023?
Against all odds, South African dealerships defied tough economic conditions in 2023 with a modest sales increase for cars.
It will take an easing of interest rates and inflation in the second half of 2024 to provide relief for the motoring industry. According to numbers released by the National Automobile Dealers’ Association (Nada) this week, 532 098 cars were sold in 2023, meaning a slight increase on the 529 556 that were reportedly sold in 2022.
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CAR SALES DIP IN SECOND HALF OF 2023
According to Nada, 2023’s sales kept up with 2022 records in spite of the industry slowing down in sales volumes in the second half of the year.
December car sales – at 40 329 units – was the industry’s fifth consecutive month of year-on-year declines.
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“The overall South African vehicle market managed to show some growth in 2023, which had seemed out of reach as the market declined in the second half of the year, and this is a good psychological boost for the industry as we enter 2024,” Nada chair Brandon Cohen said in a statement.
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The silver lining came in the form of car exports, which reached record highs of 396 290 units, growing 12.7% from 2022.
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“Overall, last year, dealers had to cope with tough market conditions that were, arguably, the toughest since 2007 or even 1998 in terms of economic pressure on consumers,” Cohen added.
“This led to some overstocking, placing importers, distributors, and manufacturers under significant pressure to facilitate stock movement. Consequently, efforts were made to enhance market activity through year-end incentives, ensuring sustained sales momentum.”
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2024 DEMAND FOR CARS HARD TO PREDICT
The motoring industry is betting on eased interest rates and inflation, in the hope that it will usher in some relief in the second half of the year, where gains could be likely.
“This year will certainly not be a leisurely ride and will again require resilience and commitment from the dealer network,” Cohen concluded.