Though South Africa’s new-vehicle sales for May 2022 increased marginally year on year, the knock-on effects of the KwaZulu-Natal floods made a significant dent in the country’s export figure. Still, SA has a new best-selling vehicle…

South Africa’s new-vehicle industry felt the brunt of April’s KwaZulu-Natal floods in May 2022, according to Naamsa. The knock-on effects of the disaster – including extensive damage to Toyota’s Prospecton facility – along with a raft of compounding factors meant the country’s new-vehicle sales grew just 2.1% year on year to 39 177 units in May (a figure likewise up slightly on April 2022), while export sales plummeted 29.9% to 25 786 units.

Naamsa says an estimated 34 775 units (or 88.8%) of May 2022’s overall figure represented dealer sales. The new passenger-car market at 27 437 units grew an encouraging 13.8% year on year, though it was strongly supported by the rental industry, which accounted for a substantial 10.0% of sales. Meanwhile, with Hilux and Hi-Ace production having been halted, sales of new light-commercial vehicles came in at just 9 221 units, representing a year-on-year decline of 22.6%.

Meanwhile, WesBank lauded the industry for continuing “to show resilience” during May 2022 in the face of market conditions “containing more and more challenges”.

“In uncertain times where volatility is a recurring theme, May presented unnecessary additional challenges to the market, but [it] fought bravely for recovery. Supply constraints were also amplified by the impact of the floods in KZN on one of the market’s largest producers, not to mention the continued disruptions in logistics,” says Lebogang Gaoaketse, Head of Marketing and Communications at WesBank.

New vehicle sales summary for May 2022

Aggregate new-vehicle sales of 39 177 units increased by 2.1% (819 units) compared to May 2021.New passenger-vehicle sales of 27 437 units increased by 13.8% (3 318 units) compared to May 2021.New light-commercial vehicle sales of 9 221 units decreased by 22.6% (-2 691 units) compared to May 2021.Export sales of 25 786 units decreased by 29.9% (-11 013 units) compared to May 2021.

10 best-selling car brands in South Africa for May 2022

With its Prospecton factory remaining well and truly shuttered throughout May thanks to flood damage (with only Hino assembly resuming late in the month), Toyota’s total dropped further from its already contracted April figure. That said, the Japanese firm’s final tally of 6 664 units – largely courtesy of its imported models – was enough to keep it in first place, ahead of the Volkswagen Group. Suzuki, meanwhile, registered yet another record month (crossing the 4 000-unit mark for the first time) to retain a strong third place (a mere 447 units behind the VW Group but actually just ahead of the VW brand). Ford, meanwhile, climbed three places to fifth, just five units ahead of Renault.

1. Toyota – 6 664 units

2. Volkswagen Group – 4 778 units

3. Suzuki – 4 331 units

4. Hyundai – 3 039 units

5. Ford – 2 447 units

6. Renault – 2 442 units

7. Nissan – 2 299 units

8. Kia – 1 972 units

9. Haval – 1 936 units

10. Isuzu – 1 507 units

10 best-selling vehicles in South Africa for May 2022

After placing second in April, the Suzuki Swift became the best-selling vehicle in South Africa in May 2022, with a record 1 764 units (475 of which came courtesy of the rental channel) registered. The Ford Ranger (1 548 units) climbed four places to second, forcing the Toyota Hilux (1 368 units) down to a very unfamiliar third spot. Of course, Hilux production ground to a halt after the aforementioned floods (the likewise locally built Corolla Cross, meanwhile, dropped from fourth in April to clear out of the top 10 in May, with registrations falling to 181). The new Isuzu D-Max climbed five places to fifth, while new entrants for May 2022 included the imported Toyota Urban Cruiser (1 213 units), Volkswagen T-Cross (981 units) and Haval Jolion (975 units).

1. Suzuki Swift – 1 764 units

2. Ford Ranger – 1 548 units

3. Toyota Hilux – 1 368 units

4. Volkswagen Polo Vivo – 1 179 units

5. Isuzu D-Max – 1 163 units

6. Volkswagen Polo (hatch) – 1 124 units

7. Nissan NP200 – 1 066 units

8. Toyota Urban Cruiser – 1 213 units

9. Volkswagen T-Cross – 981 units

10. Haval Jolion – 975 units

Top 5 vehicles exported from South Africa in May 2022

Volkswagen’s Kariega-built Polo hatchback was again the export leader, with more than 6 500 units leaving local shores in May 2022. The Silverton-produced Ford Ranger was second (this time on 5 368 units), with the Isuzu D-Max and Nissan Navara each climbing a place to third and fourth, respectively. Again, thanks to the lack of production at Prospecton, the Hilux’s export figure plunged to just 123 units. We should point out, as always, that BMW and Mercedes-Benz did not submit detailed figures, so it’s unclear how many new X3 and C-Class sedan units were exported from SA during the reporting period.

1. Volkswagen Polo (hatch) – 6 526 units

2. Ford Ranger – 5 368 units

3. Isuzu D-Max – 499 units

4. Nissan Navara – 482 units

5. Toyota Hilux – 123 units

Sales outlook

So, what’s next for South Africa’s new-vehicle market? Well, Naamsa points out the market is facing a number of obstacles, from the continued effects of the KZN floods to a “tightening of domestic monetary policy, a further rise in load-shedding and the adverse impact of domestic and foreign factors on business and consumer confidence in the country”.

In addition to the latest rise in interest rates of 50 basis points, which Naamsa notes is the biggest margin seen in more than six years, the depreciating rand along with the soaring oil price continue to “add to inflation risks”, along with more pain at the pumps.

“Although the economy will need to adjust to this new reality, long-term solutions are required in an already unbearable inflationary environment which would worsen, along with negative secondary economic effects,” the organisation said.

WesBank’s Gaoaketse added the fact dealer performance in both the passenger-vehicle and light-commercial vehicle segments outperformed the market in May 2022 “continues to be reassuring” that demand remains in the consumer space.

“This demand is displayed in WesBank’s own data, with applications increasing 9.7% year-on-year. The pre-owned-vehicle market remains robust, with more than double the volume of applications in the used vehicle market than new, as consumers continue to combat availability of stock and affordability,” says Gaoaketse.