In the fourth quarter of 2023, South Africa’s automotive sector faced challenges as aggregate new vehicle sales declined by 5.4% compared to the same quarter in 2022, according to the Automotive Business Council (Naamsa). Passenger car sales dropped by 6.9%, while commercial vehicle sales decreased by 2.2%. Notably, new energy vehicle (NEV) sales surged by 59.9% from Q4 2022 to Q4 2023, as reported by Naamsa. NEV sales also saw a significant year-on-year increase of 64.6% in 2023. Naamsa noted that NEV sales breached the 1% share of the new vehicle market for the first time in 2023, representing 1.45% of total new vehicle sales, up from 0.88% in 2022. These figures reflect the ongoing challenges faced by the automotive sector, such as declining new vehicle demand due to economic strain on consumers and logistical challenges at the country’s ports, alongside emerging trends like the growing popularity of new energy vehicles.
