The second-generation Volkswagen Polo Vivo has sold close to
120 000 units since its launch in the local market in 2018. Photo by VW SA
Passenger car sales took a dip last month as consumers deal with rising living costs, these were the top 10 vehicles sales August 2023.
The second-generation Volkswagen Polo Vivo has sold close to
120 000 units since its launch in the local market in 2018. Photo by VW SA
The rising cost of living is having a direct impact on South Africans ability to buy new cars, according to Naamsa. We take a look at vehicles sales August 2023.
According to Naamsa, the August 2023 new passenger car market was recorded at 28 951 units which is a decline of 2064 cars. That translates into a loss of 6.7%, compared to the 31,015 new cars sold in August 2022.
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The car rental industry supported the new passenger car market during the month and accounted for a sound 16.2% of sales in August.
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The passenger car sales figures illustrated South Africans’ appetite for affordable hatchbacks with the Volkswagen Polo Vivo, Toyota Starlet, Suzuki Swift and Volkswagen Polo appearing in the top five.
The Toyota Corolla Cross, built at the Japanese brand’s plant in Prospecton, Durban, was the second best-selling car in August 2023 with 2130 units, according to IOL.
See the list of the top 10 best-selling cars for August:
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Naamsa says the reason for weak new passenger car sales is the impact of rising costs of living and lower disposable income on consumer sentiment and the ability to be active in the new vehicle market.
Affordability along with delayed replacement cycles appear to be driving new vehicle sales. On the positive side, the significantly less daytime loadshedding since June 2023, interest rates that were put on hold in July 2023 for the first time since November 2021 and inflation now firmly falling within the 3%- 6% target band, have been providing some relief for consumers.