Blog - April 2024
Due to the ongoing weak consumer demand and the recent Easter holidays the impact on new vehicle sales at 44 237 units for March 2024, reflected a decline of 5,877 units, a drop of 11,7%, from the 50,114 vehicles sold in March 2023. What came as a big surprise is that export sales at 24 161 units also recorded a decline of over 8 000 units, or 27% in March 2023 compared to the corresponding month in 2023.Truck sales (medium and heavy) also reflected a weak performance for March. With 726 units (medium) and 2,064 units (heavies) a decline of 15,8% from the 862 units sold in March 2023 in the case of medium commercial vehicles, and, in the case of heavy trucks and buses 2,1%, compared to the 2,109 units sold in the corresponding month last year. Interesting to see is that the Chinese truck brands like FAW and Sino trucks (who is fairly new in South Africa) represented over 16% of the total sales in medium and heavy commercial sales.In the last eight months, the new vehicle market continues its downward slope. For the first quarter of 2024 the total new vehicle sales are now 5,3% below the corresponding quarter in 2023.The effect of the South African Reserve Bank`s aggressive policy on hiking interest rates took some time to filter through to new vehicle sales.South Africa`s economic growth outlook for 2024 is projected at around 1,2% by the SA Reserve Bank which is stronger than 2023. Once the interest rate cutting cycle starts, likely during the second half of the year, better economic prospects are expected for the new vehicle market. Motorists had to deal with yet another petrol price hike from Wednesday 3 April, while those with diesel vehicles and Truck operators will benefit a small reduction in price. The price of 95 Petrol increased by 67c per litre with Diesel (50ppm) reduced by 2c per litre. The return of Somali pirates adds to the crisis for global shipping companies.Transport and Logistic companies in South Africa are hugely and continuously exposed to the risks of hijacking and armed robberies. But unbeknown to many, similar incidents and attacks happens on the Oceans.Very recently a speed boat carrying more than a dozen Somali pirates in the western Indian Ocean, attacked the crew of a Bangladeshi-owned bulk carrier. The pirates climbed aboard the Abdullah, firing warning shots and took the captain and second officer hostage.A week later, the Abdullah was found anchored off the coast of Somalia, the latest victim of piracy that international navies thought they had brought under control.More than 20 attempted hijackings since November have driven up prices for armed security guards and insurance coverage for vessels out on the oceans.Thanks once again to Naamsa for providing us with sales statistics. -Cobus Lourens-