May vehicle sales numbers where nothing but disappointing. According to the press release by the National Automobile Association of South Africa, a total 49 465 motor vehicles where sold in the month of May 2014, a 9.2% decline from the same time last year. Using these numbers as a gauge for the overall South African economy, it's clear that South Africans are feeling the pinch more and more.

Few passenger cars where bought in May 2014 than in 2013. At a total of 32 846 units, that represented a 14.1% fall from the 37 191 sold last year. The major contribution to this decline was an overall decline in the country's economic activity. Car buyers are pressed, and holding on to their used cars longer, before considering a new one. The most pressing matter however is how long this will go on before people come back to the market. In the past five months of the year, new vehicle prices have increased by an average 6.58%, while second-hand car prices have been flat at a 0.83% increase. These numbers further reflect what we have been saying about the benefits of a used car right now.

Year to date, 172 946 passenger cars have been sold in South Africa, which sounds like a staggering sum, but still far below the 186 644 units sold from January to May 2013. Looking at the top 10 list for May, we have found the Volkswagen's Polo brands steady at number 1 (combined), but 379 units less than the previous month, April.

Next in line is the Toyota Corolla, which as from last month added a “new” model to the range, the Toyota Corolla Quest. Owing to South Africa's continued demand for the previous version of the Corolla, the guys in Durban decided to re-introduce the previous Corolla as the Quest, therefore opening up supply for buyers demanding a lower priced option. The move by Toyota will secure their profits in the short to medium future until demand for the newest Corolla picks up to acceptable levels.

Another highlight from May numbers is the fact that Mercedes-Benz's C Class outpaced BMW's 3 Series as the most popular luxury sedan in South Africa. Sure it was only by 12 units, but it sends out a message to BMW, whose 3 Series upped its volumes from April, but not as much as the C Class' over 100 units move up.

Here are the 10 most popular passenger cars in South Africa, May 2014

  1. Volkswagen Polo & Polo Vivo – 4408

  2. Toyota Corolla/Auris/Quest – 1922

  3. Toyota Etios – 1033

  4. Ford Figo – 867

  5. Mercedes-Benz C Class – 772

  6. BMW 3 Series – 760

  7. Toyota Fortuner – 698

  8. Volkswagen Golf 7 – 627

  9. Ford Fiesta – 585

  10. Ford EcoSport – 561

The upside in light commercial vehicles, which includes bakkies was in stark contrast to passenger cars. Owing to the commercial use of these vehicles, the resilience of the market for bakkies for sale is set to continue. In May, 13 664 units of where sold, topped by the Toyota Hilux. That was a 6.8% improvement from April, or +864 units.

The Toyota Hilux leads the overall vehicles market for a second month in a row, and sales in May increased from April. 2637 Hilux were sold in May, while 2457 were sold in April. However, second on the list is the Ford Ranger, which made a substantial upward swing in May. At 2018 Rangers sold, last month was one of the best months on record since the bakkie first came out in 2010.

Top ten best selling bakkies in South Africa, May 2014

  1. Toyota Hilux – 2637

  2. Ford Ranger – 2018

  3. Nissan NP200 – 1604

  4. Isuzu KB – 1482

  5. Chevrolet Utility – 1353

  6. Toyota Quantum – 1068

  7. Nissan NP300 – 650

  8. VW Amarok – 248

  9. Toyota Land Cruiser PU – 245

  10. Mazda BT-50 – 192

Highlights from May 2014

With aggregate sales of 5441 units, AHM/AAD (the importers of Kia and Hyundai cars in South Africa) are solidifying their position as the third biggest car company in South Africa, slightly ahead of former number 3, Ford Motors. The popularity of the Hyundai i10 and i20 has helped the Korean car maker significantly in the crowded entry level models.

Used vehicles remain a better option in terms of price given relatively unchanged 0.83% price increases since the beginning of the year.

South Africa's declining economy, -0.6% in the first quarter of 2014 has been greatly affected by declining vehicle sales. In May alone, exports of cars made in South Africa declined by a whopping 40.5% to 15 613 units from May last year. However, with the R1-billion investment by Toyota in its Durban plant, and Mercedes-Benz's upping its production of the latest C Class in Port Elizabeth, the export numbers should be favourable in the coming months.

Ford gets three vehicles in the top 10 for the first time.

Top selling cars and bakkies in April, 2014 http://www.usedcarsforsale.co.za/news/78/top-selling-cars-&-bakkies-in-south-africa-april-2014

Author: Pierre Theron