Despite economic challenges, South Africa’s automotive industry experienced a slight increase in vehicle sales in 2023, with a total of 532,098 vehicles sold, up from 529,556 in the previous year.
- Local manufacturers found hope in record-high vehicle exports, which reached 396,290 units, marking a 12.7% growth compared to the previous year.
- The industry faced five consecutive months of year-on-year declines, with December sales amounting to 40,329 units. However, the overall growth for the year was seen as a positive boost for the industry.
- Dealers had to navigate tough market conditions due to high interest rates and inflationary pressures, which affected consumer spending capacity and led to some overstocking.
- The industry is cautiously optimistic about the outlook for 2024, with hopes of easing interest rates and declining inflation in the second half of the year, potentially contributing to improved sales performance.
- Dealers, importers, distributors, and manufacturers are expected to remain resilient and committed to overcoming market challenges in 2024.
- Efforts were made to enhance market activity through year-end incentives to sustain sales momentum and facilitate stock movement.