Motor trade sales climbed by 16.6% in December 2022 compared to the same month the previous year, according to Statistics South Africa figures released on Thursday.
In November, automobile trade sales increased 14.4% year on year.
New car sales saw the greatest yearly rise in December, increasing by 30.7%.
According to StatsSA. This was followed by a 22.5% increase in gasoline sales and a 17.7% increase in workshop profits.
According to the Automobile Business Council (Naamsa), the new vehicle market saw its 12th consecutive month of year-on-year growth in December 2022, with aggregate industry new vehicle sales of 41 783 units representing a 16.2% rise over the same month the previous year.
During December, the department of natural resources and energy raised both grades of fuel by 59 cents per litre, with a litre of 95 unleaded petrol costing R22.81 in coastal areas and R23.46 in rural areas.
Motor trade sales increased 18.8% in 2022 compared to 2021, with the biggest drivers being gasoline sales (30.3% higher), new vehicle sales (19.6% higher), and used vehicle sales (12.1% higher).
According to Nedbank economists, the car industry will likely stay relatively healthy in the first half of 2023 as pent-up demand is steadily satisfied and dealers work through huge waiting lists.
“The ongoing recovery in the travel, tourism and hospitality industries should continue to buoy the rental market. However, domestic sales will slow as the year progresses, hurt by sticky inflation and the rapid rise in interest rates,” they said in a note.
“On the supply-side, regular and disruptive power outages and the continued risk of global supply chain disruptions will undermine vehicle production and sales.”
During December, the department of natural resources and energy raised both grades of fuel by 59 cents per litre, with a litre of 95 unleaded petrol costing R22.81 in coastal areas and R23.46 in rural areas.
Motor trade sales increased 18.8% in 2022 compared to 2021, with the biggest drivers being gasoline sales (30.3% higher), new vehicle sales (19.6% higher), and used vehicle sales (12.1% higher).
According to Nedbank economists, the car industry will likely stay relatively healthy in the first half of 2023 as pent-up demand is steadily satisfied and dealers work through huge waiting lists.
“The ongoing recovery in the travel, tourism and hospitality industries should continue to buoy the rental market. However, domestic sales will slow as the year progresses, hurt by sticky inflation and the rapid rise in interest rates,” they said in a note.
“On the supply-side, regular and disruptive power outages and the continued risk of global supply chain disruptions will undermine vehicle production and sales.”
Given the significant association between new vehicle sales and GDP growth rate, Naamsa predicted single-digit increase in new vehicle sales in 2023. Additionally, in many advanced and emerging nations, excessive inflation and aggressive interest rate rises represent downside risks to export sales.