Executive summary
- Vehicle sales increased to 1320 vehicles for June 2023, from the 982 vehicles sold in May 2023. This represents a monthly increase of 34%. (Figure 1)
- Sales of passenger, light commercial, medium commercial, and heavy vehicles, extra heavy, and buses increased by 14.9%, 60.6%, 22.7% 57.1%, 12.8%, and 100% month on month respectively
- Out of 5113 vehicles sold during the first six months of 2023, 2650 were passenger vehicles, 2490 were Light commercial vehicles, 150 were medium vehicles, 88 were heavy commercial vehicles, 65 were extra heavy commercial vehicles and 8 were buses
Analysis
- The monthly increase in vehicle sales between June and May 2023 was mainly driven by high sales of light commercial vehicles. This could be ascribed to improved economic activity which drives the need for these vehicles for the transport of goods, materials, personnel, and equipment.
- On an annual basis, new vehicle sales in the first half of the year increased by 24%. This could indicate greater consumer spending and confidence, implying that individuals and businesses now have the financial capacity and willingness to invest in purchasing new vehicles, stimulating economic activity.
- Passenger vehicle sales increased to 580 vehicles from 505 vehicles sold in May 2023. This could have been influenced by a no increase in interest rates for the month of June.
- Light commercial vehicle sales increased to 657 in June 2023, up from 409 in May 2023. This indicates that the performance of the commercial services sector has improved.
Table 1: Monthly vehicle sales by type
| Market | May-23 | Jun-23 | Monthly unit change | Monthly % change |
| Passenger vehicles | 505 | 580 | 75 | 14.9 |
| Light commercial vehicles | 409 | 657 | 248 | 60.6 |
| Medium commercial vehicles | 22 | 27 | 5 | 22.7 |
| Heavy commercial vehicle | 7 | 11 | 4 | 57.1 |
| Extra heavy commercial vehicle | 39 | 44 | 5 | 0.1 |
| Bus | 0 | 1 | 1 | 1.0 |
Figure 1: Monthly Vehicle Sales (June 2023 vs. May 2023)
Source: Lightstone Auto & HEI RESEARCH
Figure 2: Year on Year, Vehicle Sales % Growth (May 2022- May 2023)
Source: Lightstone (Pty) Ltd & HEI RESEARCH
Outlook
The demand for new vehicle sales by individuals and businesses is still influenced by interest rates, enticing auto finance alternatives, and consumer confidence. Despite high interest rates and eroded consumer income caused by inflation and stagnating wages, demand for new vehicles has remained resilient. In the short to medium term, we believe that the demand for new vehicles will continue to rise, albeit at a slow pace.