South Africa 2015. Market moderately negative

South Africa Car Market

South Africa Car Market 2015 fell down for the second year in a row due to negative economic environment and low consumer’s demand. Ford and Renault gained space thanks to the successful introduction of new models. 

Economic Outlook

In Q3, South Africa avoided falling into technical recession and GDP expanded 1.6% on a sequential basis, thus rebounding from the previous quarter’s 1.3% contraction. The expansion was attributed to a rebound in the manufacturing sector due to higher production of petroleum and chemical products. Conversely, the agricultural sector disappointed once again as adverse weather conditions took a toll on production and recorded a double-digit contraction for the third consecutive quarter.

Against the backdrop of weak economic prospects due to external and domestic headwinds, Standard & Poor’s downgraded the outlook on the country’s debt earlier this month from stable to negative.

Similarly, Fitch Ratings revised down the sovereign rating to one notch above “junk” status. Following the country’s downgrade and the recent ministerial shake-up, the rand continued the downward trend and reached a new record low in early-December.

Market Outlook

In December 2015 according to data released by the Department Trade and Industry of South African, total new light passengers vehicles sold in the country have been 46.716 , down 4.4% from the correspondent period last year, posting the 10th negative month in a string.

Following a little 1.8% lost reported in the first half of the year, the market mood deteriorated in the second half. The full year sales had been heavily impacted with final volume at 587.158 units, down 4.2% from the 2014, as the second declining year.

According to NAAMSA, the “2016 is expected to be a lacklustre year for the SA automotive industry, particularly in the case of domestic new vehicle sales. Industry production levels, on the back of expected further growth in vehicle exports, should however remain in an upward phase.

Domestically, economic growth continues to disappoint and South Africa’s fiscal position remains under pressure as a result of difficulties experienced by a number of state-owned enterprises, rising expenditure on social programmes and increased debt servicing costs.

International events which dominated 2015 are likely to continue in the current year and these include the global economic slowdown notably in Asia, Africa, South America and parts of Europe and the associated relentless downward pressure on commodity prices. The turn in the United States credit cycle is also a factor.”

Competitive Arena

In the entire 2015, Toyota have registered 117.887 vehicles (-3.9%) with 20.1% of market share, ahead of Volkswagen with 82.255 (-7.0%) and Ford with 78.162 (+10.3%).

In fourth place Nissan with 41.67 0 sales (-6.3%), followed by Hyundai with 38.110 (-5.9%), Chevrolet with 31.073 (-19.8%) Mercedes with 25.513 (-14.8%), BMW with 21.582 (-12.0%) and the Renault with 20.012 units (+6.6%).

As far as group’s ranking, the leader was Toyota with 20.3% of share, ahead of Volkswagen group with 16.8% and Ford with 13.3%.

The Volkswagen Polo was again the best-selling model with 56.820 sales ahead of the Toyota Hilux with 35.684 and the Ford Ranger with 33.920.

Tables with sales figures

In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.

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