02 April 2024: New vehicle sales seemingly plummeted in March compared to the same month last year. But two major factors conspired against the numbers, according to WesBank.
Figures released by naamsa | the Automotive Business Council saw the March new vehicle market decline 11,7% to 44,273 sales, at first glance scaring the market. But whilst the number no doubt dealt the industry a bit of a blow – year-to-date sales are now 5,3% down compared to last year – not all was lost for March sales.
The particularly early calendar impact of the Easter public holidays meant March 2024 was a much shorter selling month than March last year (20 selling days versus 22 last year). “One can hope that April will bounce back and provide some level of correction against last year’s sales,” says Lebo Gaoaketse, Head of Marketing and Communication at WesBank. “But considering the rate of applications per day was up against March last year, the levels of demand remain high.”
The other significant impact is that March 2023 was last year’s best-selling month at 50,114 units, significantly out-performing the next-best sales month of 46,810 units in June. “Statistically, this provides a skew comparison in context, especially given that April sales – when the public holidays usually fall – was the worst-selling month for the past two years,” says Gaoaketse.
“So, while March sales appeared dreadful, down 5,841 units year-on-year, these were only 1,1% down on February’s performance,” says Gaoaketse.
Passenger car sales were down 15,9% to 26,577 units. Although 88% of the market volume was sold through dealers, retailers will be feeling some performance anxiety heading into the economic headwinds.
Light Commercial Vehicles (LCVs) continued to fare better, down 4,3% to 14,870 units. The resilient performance of the LCV market can best be seen in the segment’s year-to-date numbers, just 0,2% down for the first quarter.
“The broader economy remains a challenge for South African motorists,” says Gaoaketse. “With interest rates unchanged once again, they remain high amidst generally high inflation. Fuel prices will increase again this week, continuing to place pressure on household budgets and their ability to service debt.”
WesBank says the market will inevitably also be cautious with pending elections in May, dampening first half performance.
Delicious Wing
Wendy Luhabe\’s first step into entrepreneurship came in 1991 when she launched Bridging the Gap, a consulting firm that assists young black South Africans entering the working world. In 1993, she launched Women Investment Portfolio Holdings, the first fund to provide capital to women-owned businesses in South Africa. In 2002, she launched Africa\’s first Women-Focused Private Equity Fund. She also published her first book entitled: Defining Moments: Experiences of Black Executives in South Africa\’s Workplace. Luhabe launched her Foundation in 2002, to educate young disadvantaged black women, particularly from rural areas. In 2011, Luhabe was asked by Hillary Clinton to join the International Council on Women\’s Business Leadership (ICWBL). In 2014, she was appointed Member of the Board at The Abraaj Group, a global investment firm. In 2014, she was awarded Woman of Worth from the Jewish Achievers Awards in South Africa. In 2014, she was awarded the Lieutenant of the Victorian Order (LVO) by the British Royal Family. In 2015, she was awarded Lifetime Achievement Award at the Standard Bank Top Women Awards.