Take a look at how new car sales performed in South Africa in May 2021.

As the South African economy desperately tries to recover from the devastating impact of the Covid-19 pandemic and with the onset of the third wave of infections, the future remains uncertain.

In May 2020, South Africa was emerging out of a hard lockdown with retail sales resuming under Level 4 restrictions. Month-on-month comparisons are therefore not reflective of normal trading patterns and drawing conclusions based on such comparisons are futile.

Nonetheless, let's take a look at new car sales figures for the month of May 2021 which were released by naamsa, the Automotive Business Council.

New Car Sales in South Africa for May 2021

Aggregate new vehicle sales of 38 337 units up by 197.8% (+25 463 units) compared to the 12 874 units sold in May 2020.

Passenger car sales of 24 122 units up by 169.0% (+15 156 units) compared to the 8 966 units sold in May 2020.

Light Commercial Vehicle (LCV) sales of 11 930 units up by 288.5% (+8 859 units) compared to the 3 071 units sold in May 2020.

Export sales of 35 326 units up by 196.8% (+23 425 units) compared to the 11 901 units expired in May 2020.

Top 10 Best Selling Car Brands in South Africa for May 2021

Toyota – 9 882 units

Volkswagen – 5 579 units

Ford – 2 910 units

Hyundai – 2 836 units

Suzuki – 2 034 units

Isuzu – 1 818 units

Haval – 1 782 units

Nissan – 1 746 units

Kia – 1 521 units

Renault – 1 511 units

Sales Outlook

The new vehicle market is in a gradual recovery with anticipated growth in excess of 3% expected for 2021. It’s also expected that business conditions will improve further in the remaining 6 months of the year as both the domestic and international markets rebound. Exports are expected to grow further as demand for new vehicles in the international market continues to increase.

Lebogang Gaoaketse, Head of Marketing and Communication at WesBank, commented, “The market continues its slow recovery in the face of a number of challenges and opportunities. Interest rates remain at historical lows, providing some of the most affordable finance and consequently opportunities to purchase a new vehicle. However, price inflation against the backdrop of a subdued economy continues to be a barrier for many purchase decisions.” The latest Vehicle Pricing Index (VPI) released by TransUnion indicates that new car prices rose by nearly 3 times the general inflation rate during the first quarter of 2021.

It must be noted though that growth to pre-pandemic levels will be slowed by factors such as unstable energy supply and South Africa’s rising debt levels.

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