Quarterly review of business conditions: new motor vehicle manufacturing industry & automotive sector: 2nd quarter 2023

naamsa’s quarterly review of business conditions for the South African motor vehicle manufacturing industry, during the second quarter of 2023, as submitted to the Director-General, Department of Trade, Industry and Competition.

Industry vehicle sales, export, and import statistics for 2014 through 2022, together with current projections for 2023 and 2024, are reflected on the attachment to the submission.

KEY FEATURES: SECOND QUARTER 2023

  • New vehicle sales during the second quarter 2023 recorded an increase of 8,6% compared to the corresponding quarter 2022 but a loss of 8,1% compared to the previous quarter 2023, reflecting the strain on consumers’ budgets in view of a further interest rate increase and ongoing affordability considerations during the quarter;
  • New energy vehicle [NEV] sales by 18 industry brands increased by 100,7% from 738 units in the second quarter 2022 to 1,481 units in the second quarter 2023;
  • Second quarter 2023 aggregate industry employment as at 30th June 2023 totalled 33,497 reflecting an increase of 105 jobs compared to the 33,392 industry head count as at the end of March 2023;
  • Average industry capacity utilisation levels during the second quarter 2023 continued to reflect the recovery in vehicle production levels to pre-pandemic levels but the ongoing global semi-conductor shortage impacted OEMs differently while loadshedding and unplanned outages also impacted the operations of the companies in the various segments to different degrees;
  • Aggregate capital expenditure by the major light vehicle manufacturers in 2022 amounted to R7,1 billion, linked to new generation model investments; 
  • During the second quarter 2023, vehicle exports increased by 13,8% to 88,025 units compared to the 77,340 units exported in the corresponding quarter 2022; and
  • The naamsa CEOs Confidence Index, as an in-house leading business confidence indicator of current and future developments in the domestic automotive industry, reflects the sentiment expressed by the naamsa CEOs for the second quarter 2023 compared to the second quarter 2022 as well as automotive business conditions and the country’s economy in general for the next 6 months.

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Industry Vehicle Sales - 2014 - 2024 - Actual and Projections 2nd Quarter 2023