These were SA’s best-selling cars in a quiet June

Toyota remained SA’s favourite brand in a month in which new car sales continued their slowdown.

The brand recorded 9,743 new vehicle sales in June, ahead of Volkswagen, which was back in second place (5,514 sales) for the second consecutive month after being displaced by Suzuki for the first time in April. Suzuki was third last month on 4,297 sales ahead of Ford (2,404), Hyundai (2,367), Isuzu (2,157), Nissan (1,905), Chery (1,653), GWM (1,307) and BMW (1,104) rounding out the top 10.

The delayed announcement of the government of national unity (GNU) cabinet affected local business confidence and consumer decision-making regarding major purchases, a sentiment reflected in new vehicle sales declining last month by 14% to 40,072 units compared with June 2023. 

The light commercial vehicle segment was hit hardest, with sales down 24.3%, while passenger car sales were down 9%.

WesBank said affordability was the biggest factor limiting growth, a view supported by the TransUnion SA Vehicle Pricing Index, which showed new vehicle prices rose 4.7% for the first quarter of 2024 compared with 2023. The marginal increase in the average loan amount is evidence many households are opting for one multipurpose vehicle rather than maintaining many vehicles.

WesBank’s own data shows the average loan amount on a new vehicle increased 3.5% during June, the average deal duration increased 3.8% to more than 51 months, and the average contract period over 73 months compared with a year ago.

“These are all signs of affordability challenges that either indicate consumers are holding onto their existing vehicles for longer or are forced to lower instalments by extending the loan period,” said Lebo Gaoaketse, head of marketing and communication at WesBank.

One primary factor affecting debt remains high interest rates, with relief expected only during the second half of the year.

“Consider June’s average loan value at WesBank of R410,000. Over 72 months at the prime lending rate (11.75%) the instalment is an estimated R8,054.83. An indebted customer who had financed the same value vehicle in 2020 linked to a prime rate of 7% would be paying R1,015.81 more per month today, which, at current interest rates, equates to about R75,730.32 more for the same car over the same contract period,” said Gaoaketse.

The taxi market was slowly starting to recover as sales over the past few months dropped from about 1,400 a month to almost zero, said Brandon Cohen, chair of the National Automobile Dealers’ Association (NADA).

“This decline is due to banks being risk-averse in this sector. This cautious approach has extended across the industry, with approval rates remaining under pressure.”

The Toyota Hilux was again the country’s best-selling new vehicle in June, ahead of the VW Polo Vivo. The Ford Ranger was the second most popular bakkie with the Isuzu D-Max third. The Toyota Corolla Cross and Chery Tiggo 4 Pro were respectively the second and third best-selling passenger cars after the Polo Vivo.

A notable performer was the new Toyota Land Cruiser Prado, which had a very strong first month on the market with 694 sales after its predecessor sold 48 units the month before.

TOP 30 SELLING VEHICLES IN JUNE

1. Toyota Hilux — 2,435
2. VW Polo Vivo — 2,325
3. Ford Ranger — 1,868
4. Isuzu D-Max — 1,794
5. Toyota Corolla Cross — 1,578
6. Chery Tiggo 4 Pro — 1,172
7. Toyota Starlet — 1,171
8. Suzuki Swift — 1,073
9. Toyota Fortuner — 972
10. Hyundai Grand i10 — 948
11. VW Polo — 902
12. Nissan Magnite — 902
13. Mahindra Scorpio Pik-Up — 829
14. Haval Jolion — 736
15. Toyota Land Cruiser Prado — 694
16. Suzuki Fronx — 620
17. Kia Sonet — 561
18. Toyota Vitz — 542
19. Hyundai i20 — 529
20. Nissan Navara — 505
21. Nissan NP200 — 476
22. Suzuki Baleno — 468
23. Suzuki Ertiga — 458
24. VW Polo Sedan — 391
25. Toyota Hi-Ace — 381
26. Toyota Urban Cruiser — 375
27. Chery Tiggo 7 Pro — 352
28. VW T-Cross — 349
29. Renault Kiger — 348
30. Toyota Rumion — 330