Budget-Friendly Cars Fuel Growth In South Africa’s New Car Market

It’s .a mixed bag of results for the South African automotive industry. While used car sales slipped slightly compared to October, it’s worth noting that November was the second most successful month for used car sales and the most successful for the new passenger car segment. New car sales enjoyed notable growth, suggesting renewed consumer confidence in the market, spurred by falling interest rates and a strengthening Rand.

AutoTrader’s latest industry data shows a slight decline in used car sales but strong overall performance. Last month, 32,158 used vehicles were sold, just shy of November 2023, when 32,300 used cars were delivered to customers. This represents a marginal year-over-year decline of -0.44%. 

The used car market performed exceptionally well in October 2024, when 34,968 units were sold. That translates to a Month-over-Month decline of -8.37% compared to November. The combined value of used cars sold last month totalled R13.04 billion, down R1.05 billion from October 2024, or a Month-over-Month decrease of -7.74%. 

“The November used car market data reveals evolving consumer preferences,” says George Mienie, CEO of AutoTrader. “The consistent popularity of the Volkswagen Polo and Polo Vivo highlights their status as trusted choices. However, the standout performers are vehicles like the Suzuki Swift and Toyota Starlet, which have achieved remarkable growth. This signals a shift towards more budget-friendly and versatile options. Meanwhile, the continued presence of the Mercedes-Benz C-Class in the top 10 underscores the resilience of premium vehicles in a competitive market.”

According to naamsa | The Automotive Business Council, 35,101 new passenger cars were sold in South Africa last month. This represents a notable year-on-year (YoY) increase of +18.17% compared to the previous year and a +2.35% month-on-month (MoM) increase over October 2024. 

While sales are up, data from WesBank shows that the average value of new cars it financed dropped from R402,397 in November 2023 to R378,488 in November 2024, which suggests that consumers are purchasing more affordable models. 

Despite a slight dip in sales compared to October, the average used car price in November rose to R405,713, surpassing October’s R403,049 and September’s R405,154. The average mileage decreased, albeit by 46 km, to 73,711 km, while the registration age of five years remains the same.

The most popular used passenger vehicles in November remained unchanged, with the Volkswagen Polo (1,431) and Polo Vivo (1,239) occupying the first and second spots, respectively, followed by the Toyota Fortuner (739). It’s worth noting that the Suzuki Swift also performed well, with 602 units sold last month. 

The Volkswagen Polo was the best-selling passenger vehicle on the new car market, with 2,999 units sold. It was followed closely by the Toyota Corolla Cross (2,655) and the Suzuki Swift (1,776). 

Top 10 Sold Used Models in November 2024

Source: AutoTrader Used Car Sales Data: 1 – 31 November 2024