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IOL News
03-07-2025
- Automotive
- IOL News
Cars priced below R400,000 are driving the growth in SA's new vehicle market
Affordable vehicles such as the Chery Tiggo 4 Pro, which entered the top three this month, are driving growth in the market. Image: Supplied The good times are rolling in South Africa's new vehicle market, with nine consecutive months of sales growth putting the industry 13.6% ahead of where it was this time last year, Naamsa figures show. June was a particularly strong month for the motor trade, with year-on-year sales growing by 18.7% to 47,294 units, as both passenger cars and light commercial vehicles made solid gains of 21.7% and 14.9% respectively. But household budgets remain tight and much of the growth is currently concentrated at the lower end of the vehicle market. 'The majority of the growth we're seeing is centred in the sub-R400,000 segment,' said Brandon Cohen, chairperson of the National Automobile Dealers' Association (NADA). 'This price point remains critical for volume, affordability and trade-ins, with a direct knock-on effect on pre-owned sales performance,' He added that the used vehicle market was also benefiting from improved affordability metrics, driven by softened interest rates, favourable vehicle pricing, and the rollout of the two-pot retirement savings reform. Most telling is that 24 of the 30 best-selling new passenger vehicles in South Africa last month (see IOL's top 50 list here) have a starting price of below R400,000. In fact, four of the five top-sellers, namely the Volkswagen Polo Vivo, Chery Tiggo 4 Pro, Suzuki Swift, and Hyundai Grand i10, all have starting prices of less than R300,000. Many buyers continue to face budget constraints, said Lebo Gaoaketse, marketing head of WesBank, and at a finance level this is being seen through longer contract terms and lower credit amounts. "These are two major indicators of affordability pressure to reduce monthly installments within the need for new replacement vehicles,' Gaoaketse added. 'In short: South Africans want new cars – but they're spending less on them.' According to late-2024 data from TransUnion, the average loan amount on a new car in South Africa is currently R401,000. Yet, regardless of how much South Africans are spending, it seems evident that lower interest rates have had a positive effect on new vehicle sales. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 'South Africa's new vehicle market growth has an uncanny alignment to the start of interest rate cuts,' Gaoaketse added. 'Interest rate reprieve since September 2024 has lifted some burden on indebted consumers and stimulated demand for credit and consequently new vehicles. The South African Reserve Bank has lowered rates 0,75% over the past nine months but may become more cautious with further cuts given global economic turmoil.' Absa's new vehicle application figures show a 13% year-on-year increase in June compared to the same period last year. 'The decreasing interest rate and the stable inflation rate have provided a welcome boost to consumers. As a result, consumers pay less on home loan and other debt instalments, increasing their ability to purchase new cars,' said Henry Botha, strategy executive at Absa Vehicle Finance. IOL Motoring
TimesLIVE
03-06-2025
- Automotive
- TimesLIVE
May figures: the best selling cars in SA
May's new vehicle market registered 45,308 sales against the 37,139 retailed in the same month last year. It was the eighth month in a row that sales have outperformed those of a year earlier. After five months of 2025, the market is 12.6% ahead of the same stage of 2024, up from 205,771 to 231,719 units. Brandon Cohen, chair of the National Automobile Dealers' Association (Nada), thinks the real market is stronger than it appears as 12 of the 24 Chinese brands selling vehicles here don't report their sales numbers. Lebo Gaoaketse, head of marketing and communication at WesBank, was cautiously enthusiastic about the figures. 'First quarter sales performed better by volume while displaying slower growth, indicating that the month was a solid volume performance rather than an overriding reason to celebrate,' he said. 'While volumes continue to be confidence-inspiring, household budgets remain under pressure,' said Gaoaketse. 'The market's expected slow recovery is continuing to play catch-up, but the industry should remain vigilant and will continue to have to drive innovative reasons to continue attracting consumer and business decisions to purchase new vehicles.' Toyota remained the country's best-selling brand in May by a considerable margin, selling 10,330 units, and the brand had nine cars in the top 30 sellers. Suzuki was in second place (5,536) ahead of Volkswagen (4,582), Hyundai (3,251) and Ford (2,932). The most popular vehicle was again the Toyota Hilux, with the rival Ford Ranger in second place. In third, and the best-selling passenger car, was the Suzuki Swift. Toyota's Corolla Cross was fourth overall. The best-selling Chinese car remained the Chery Tiggo 4 Pro (eighth overall) ahead of the Haval Jolion (10th). TOP 30 SELLERS - MAY 2025 Toyota Hilux - 2,548 Ford Ranger - 2,147 Suzuki Swift - 1,842 Toyota Corolla Cross - 1,629 VW Polo Vivo - 1,543 Isuzu D-Max - 1,473 Hyundai Grand i10 - 1,350 Chery Tiggo 4 Pro - 1,255 Suzuki Fronx - 1,219 Haval Jolion - 1,113 Toyota Starlet - 1,039 Kia Sonet - 863 Mahindra Scorpio Pik-Up - 786 VW Polo - 767 Suzuki Ertiga - 721 Toyota Starlet Cross - 694 VW T-Cross - 686 Toyota Fortuner - 679 Toyota Vitz - 624 Toyota Rumion - 618 Toyota Hi-Ace - 583 Mahindra XUV 3XO - 532 Omoda C5 - 525 Toyota Urban Cruiser - 517 Renault Kiger - 492 Chery Tiggo 7 Pro - 439 Nissan Magnite - 437 Hyundai i20 - 399 Renault Kwid - 393 Nissan Navara - 389
Daily Maverick
29-05-2025
- Automotive
- Daily Maverick
The true price of owning a car
Most prospective buyers of a vehicle tend to focus on its purchase price when figuring out if it's affordable. But there are many other factors to consider because they will inflate your monthly costs. Having recently bought a new car, I've found it quite a big adjustment getting used to a vehicle loan instalment going off my bank account after not having to pay one for eight years. That said, buying a car is about so much more than its financing. I found WesBank's recent calculations about car ownership costs incredibly helpful. These calculations look at the estimated total monthly expenses associated with owning and maintaining one of the top-selling hatchbacks locally. The data also shows how the total cost of ownership has changed over time. 'Despite the recent improvement in passenger car sales, South Africa remains a price-sensitive market,' says Lebo Gaoaketse, head of marketing and communication at WesBank. 'This means when they decide to buy a car, new or used, most buyers base their decision primarily on the purchase price. But it's important to look beyond just that and consider the total cost of ownership, which is influenced by several other factors.' Cost breakdown For a mid-range hatchback with a retail price of about R294,000, including VAT, you can expect to pay an estimated monthly instalment of R5,554.80. Cars in this price range include the Volkswagen Polo Vivo 1.4 Comfortline, Kia Picanto 1.2 EX manual, Suzuki Swift 1.2 GLX, Toyota Starlet 1.5 XS and the Fiat 500 Cult. The instalment is influenced by the interest rate linked to the vehicle financing contract, which in turn is influenced by factors such as your credit score and the loan term. It's important to note that the interest rate will vary between customers, depending on their credit profile. Insurance options If you're financing your car through a bank, insurance is compulsory before you drive it off the showroom floor. But even if your vehicle is not financed, insurance protects you against losses that might result from an accident or theft. Insurance premiums vary depending on factors such as the make and model of the car, as well as the driver's history and location. For the model in question, a comprehensive insurance premium of R1,827.24 monthly can be expected. It's worth noting that even if you have comprehensive insurance, the amount you owe the bank includes interest and is usually significantly more than the value of the car, especially in the first four years of ownership. Credit shortfall insurance is a valuable add-on to your policy. I made a point of letting my family know that I had taken this option in case I end up dying in a car accident, because I wouldn't want them stressing about the debt. Nor would I want to be stuck paying off the debt if my car is written off. Fuel costs Fuel is one of the largest recurring expenses for car owners. Gaoaketse recommends that you estimate your monthly fuel costs, determine your car's fuel consumption rate and the distance you travel each month. The average monthly fuel costs for the vehicle in this scenario are R3,902.50. This is where your choice of car can make a massive difference. Although I didn't have a car instalment previously, I was forking out between R4,000 and R6,000 a month on fuel – the 'perk' of living two hours away from the city. Swapping my gas-guzzling SUV for a hybrid car has been an absolute game-changer, and the difference at the fuel pumps still astounds me two months later. Continuing maintenance Routine maintenance is important to ensure the safe and reliable operation of your vehicle. In the WesBank example, you could expect to pay in the region of R475.75 per month, or R5,709 annually, for running costs, including routine maintenance and general upkeep. Total monthly mobility costs When combining the monthly instalment, fuel, insurance and running costs, the total monthly cost for one of the bestselling hatchbacks in South Africa comes to R11,760.29 – marginally higher than the average total cost of ownership in 2024, which was R11,578.70 per month. Historical data Reviewing historical data, the increase in the total cost of vehicle ownership becomes apparent. For instance, because of vehicle price inflation, the estimated monthly instalment for the study model has jumped from R2,417.03 in 2012 to R5,554.80 in 2025. Insurance premiums have increased from R802.66 to R1,827.24 over the same period, and fuel costs have ballooned from R1,856.75 to about R3,902.50 per month. 'Viewing the cost of vehicle ownership from this perspective is important and underscores the need to objectively and honestly evaluate one's affordability level before signing a long-term vehicle finance contract to ensure a fulfilling vehicle ownership experience,' says Gaoaketse. DM PS the numbers in this story were hypothetical and not what Neesa Moodley is paying for her car.
TimesLIVE
05-05-2025
- Automotive
- TimesLIVE
These were South Africa's top-selling cars as market booms in April
Mabasa expects the Reserve Bank to cut interest rates further, though inflation is expected to trend higher in the second half of 2025 due to global developments. Further buoying consumer confidence, the government reversed its earlier proposal to hike the VAT rate from 15% to 15.5%, a move that would preserve disposable income at a critical moment for household consumption, he said. 'The market also appears to be correcting itself, balancing affordability with demand as consumers become more realistic about their purchase decisions,' said Lebo Gaoaketse, head of marketing and communication at WesBank. WesBank data shows an average deal size shrinking 8.6% year-on-year, indicating the stresses of affordability on new vehicle purchases and the continued trend to buy down into smaller, more affordable vehicles. 'The competitive price point of new Chinese entrants will also influence this shift as consumers seek alternative value in the market.' Toyota remained South Africa's favourite brand in April, with 10,363 units sold. Suzuki strengthened its No 2 position ahead of Volkswagen, with Hyundai remaining at No 4 ahead of Ford. Notable movers were GWM/Haval and Chery, which each jumped three places in April compared with March — GWM/Haval to sixth place and Chery to seventh — further underlining the strengthening presence of affordable Chinese brands in a price-sensitive market. Omoda & Jaecoo and Jetour were other Chinese brands in the top 15. 15 BEST SELLING BRANDS IN APRIL: Toyota — 10,363 Suzuki — 5,977 Volkswagen — 3,973 Hyundai — 3,007 Ford — 2,398 GWM — 1,943 Chery — 1,852 Isuzu — 1,383 Renault — 1,281 Mahindra — 1,278 Kia — 1,277 BMW group — 1,146 Omoda & Jaecoo — 865 Nissan — 794 Jetour — 573 30 BEST SELLING CARS IN APRIL: Toyota Hilux — 2,780 Suzuki Swift — 2,053 Ford Ranger — 1,728 Toyota Corolla Cross — 1,584 Hyundai Grand i10 -1,425 VW Polo Vivo — 1,366 Suzuki Fronx — 1,186 Chery Tiggo 4 Pro — 1,133 Isuzu D-Max — 1,108 Haval Jolion — 973 Toyota Starlet — 905 Toyota Starlet Cross — 834 Kia Sonet — 812 Suzuki Ertiga — 778 VW Polo — 768 Mahindra Scorpio Pik-Up — 654 Toyota Fortuner — 606 Omoda C5 — 588 Toyota Hi-Ace — 571 Toyota Urban Cruiser — 539 Mahindra XUV 3XO — 515 GWM P-Series — 497 Renault Kiger — 470 Nissan Magnite — 449 Toyota Rumion — 448 Toyota Vitz — 433 Chery Tiggo 7 Pro — 427 Suzuki Baleno — 420 Toyota Land Cruiser — 417 Hyundai Exter — 381
The Citizen
28-04-2025
- Automotive
- The Citizen
August Festival of Motoring promises thrills at Kyalami
The Festival of Motoring, a premier automotive event, will gather leading car brands, enthusiastic fans, and industry experts at the iconic Kyalami Grand Prix Circuit from August 29 to 31. This eighth edition, powered by WesBank, promises a stimulating showcase of automotive innovation, performance and excellence, embodying the spirit of Ubuntu – 'I am because we are.' Michael Dehn, managing director of Messe Frankfurt South Africa, the event organiser, highlights the festival's core: 'More than just a car show, the Festival of Motoring is about people, passion, and the unifying power of the automotive world. Together with WesBank, we aim to deliver an unforgettable and immersive motoring experience.' Lebo Gaoaketse, head of marketing and communication at WesBank, adds: 'We are proud to continue our partnership with Messe Frankfurt South Africa, sharing a vision to present Africa's definitive automotive event. The festival's success is driven by the collective effort of all involved, from exhibitors to attendees. We look forward to exceeding previous achievements and showcasing the best the automotive industry has to offer.' The impressive line-up of participating brands for 2025 includes VW, VW Commercial, Toyota, GAC, Suzuki, BAIC, GWM, Haval, Ora, Tank, Chery, Mahindra, Isuzu, LDV and Subaru. Over 100 automotive lifestyle exhibitors will also showcase accessories, services and mobility solutions. Attendees can enjoy complimentary hands-on experiences like the self-handling track to test driving skills and the 4×4 Adventure Zone for off-road exploration. For adrenaline seekers, the festival offers exclusive driving sessions featuring the BMW Motorsport Club Series, Simola Hill Climb activations and MasterDrive experiences, available for purchase from mid-May 2025 at special festival rates. A highlight this year is the debut of the Vilaca Racing Ultimate Car and Driver Challenge, a dynamic time attack competition spanning the three days. Motorsport enthusiasts will be thrilled by Formula One-type vehicle demonstration laps and two official rounds of the Sunbet ZX10 Masters Cup Superbikes, showcasing top riders pushing their limits on the track. Santam, a leading short-term insurer, joins as the sponsor of the Premium Suite and Adventure Zone. Nondumiso Mabece, head of brand and marketing at Santam, explains the synergy: 'Sponsoring the Festival of Motoring allows us to connect directly with vehicle owners, a key demographic for insurance. The Adventure Zone and Self-handling Track provide strategic platforms for interactive engagement, highlighting our insurance products and value-added services.' The Adventure Zone will feature activities like Subaru's obstacle course, a mini carnival for all ages (courtesy of Santam), and an upgraded premium hospitality suite. Judy Maharaj, show director of the Festival of Motoring, emphasises the event's significance: 'More than a car showcase, this festival celebrates car buying as a vital step towards a fulfilling life. We commend the exhibitors for their commitment to consumers, embodying the spirit of Ubuntu. The Festival of Motoring is where Africa's automotive passion thrives. Don't miss being part of this movement.' Join Africa's premier motoring celebration! Early bird tickets with discounts are available online until the end of April. Complimentary shuttle services will enhance the visitor experience. Source: QuickPic
