Blog - March 2024
The new passenger vehicle market`s declining trend continued in February 2024. New vehicle sales in February 2024, at 44,749 units, reflected a decline of 0,9%, from the 45,162 vehicles sold in February 2023.New passenger car sales for February 2024 at 28,857 units had registered a decline of 3,1%, compared to February 2023. The persisting economic strain remains a real concern for the domestic retail motor industry.Export sales recorded a sound increase of 8,526 units or 27,5% in February 2024 vs the corresponding month in 2023.Heavy truck segments of the industry reflected a mixed performance for February 2024. Medium Commercial vehicles sales at 645 units in February 2024 showed a decline of 54 units from the 699 units sold in February 2023. In the case of heavy trucks and buses there was an increase of 238 vehicles, or 14,0%, compared to the 1,703 units sold in the same month last year.Used Truck Sales in my opinion suffered over the last two years. My view with regard to this is that Covid is three years behind us now and the global logistical chain has recovered which lead to the availability of a huge range of new products from over the globe. The other reason is due to the fact that current economic conditions like high interest rates, continuous loadshedding etc, the entrepreneur or “non-corporate” business’s (used truck buyers) suffer and hold back on Capital spending and lending.The whole concept around new truck procurement has also drastically changed over the last few years with Manufacturers offering in-house finance with amazing buy back guarantees. Therefore the corporate buyer and especially the transporters in the commodity industries no longer buy trucks to claim “so called” ownership but much rather to service their contracts, hand them back after three or four years to be replaced with new again! This also leads to the flooding of vehicles entering the used truck market!With the 2024 general election date for South Africans announced to take place on Wednesday 29 May 2024, economic uncertainty remains the reality for most businesses.Currently dealerships are offering huge incentives to prospective buyers, however only once the cutting of interest rates begins can we expect to see some upward momentum in the vehicle sales market.South African motorists are facing substantial petrol and diesel price increases from Wednesday,March 6. The Department of Mineral Resources has confirmed that the price of both grades of petrol will rise by R1.21 per litre, while diesel is set to increase by between R1.06 (500ppm) and R1.19 (50ppm).This month`s fuel price increases come mainly as a result of higher international oil prices, and as a result of the Middle Eastern conflict.From CLC Trucks, we wish you all a productive and money making March, not withstanding the fact that there are two Public holidays towards month end.A big shout out again to Naamsa for accurate and on time sales statistics!-Cobus Lourens-