SA New Vehicle Market: Q1 2024 Sales Up 3.2% — But Headwinds Remain

Naamsa — the National Association of Automobile Manufacturers of South Africa — has released Q1 2024 sales data revealing a mixed picture for the local automotive market. Total new vehicle sales of 147,234 units for the quarter represent a 3.2% increase over Q1 2023. The result masks significant variation within segments: passenger cars recovered strongly (+5.8%), bakkies and commercial vehicles declined (-1.4%) due to interest rate pressure on business buyers. **Passenger Cars** The Volkswagen Polo Vivo retained its position as South Africa's best-selling passenger car, with 14,230 units sold in Q1 — approximately 590 cars per month more than the runner-up Toyota Corolla Quest. The entry-level segment (under R300,000) proved most resilient as buyers faced affordability pressure. **Bakkies** Ford Ranger maintained its position as South Africa's overall best-selling vehicle type with 15,247 units in Q1, followed by Toyota Hilux (14,890) and Isuzu D-Max (6,234). The top three bakkies account for 24.7% of all new vehicle sales in South Africa — a figure that confirms the bakkie's unique status as South African families' primary transport of choice. **Electric Vehicles** EV sales showed strong percentage growth from a low base — 1,247 units sold in Q1 2024 represents 178% growth over Q1 2023. BYD led the segment with the Atto 3, followed by BMW's iX1 and the Volvo XC40 Recharge. Despite the growth, EVs remain 0.85% of the total market. **Outlook** Industry analysts expect the South African Reserve Bank to begin cutting interest rates in H2 2024, which should stimulate commercial vehicle demand. Load shedding's impact on the economy — and therefore consumer confidence — remains the principal uncertainty.