Category Archives: Vehicle Sales

799 New vehicles were sold in February, an increase of 19.1% m/m from the 671 vehicles sold in January, and a 6.4% y/y increase from the 751 new vehicles sold in February 2019. Two months into 2020 and 1470 new vehicles have been sold, of which 638 were passenger vehicles, 721 light commercial vehicles, and 111 medium and heavy commercial vehicles. The first two months of 2019 saw 1,429 new vehicles sold. On a twelve-month cumulative basis, a total of 10,442 new vehicles were sold as at February 2020, representing a contraction of 8.9% from the 11,459 sold over the comparable period a year ago.

A total of 347 new passenger vehicles were sold during February, increasing by 19.2% from the 291 passenger vehicles sold in January. On a year-on-year basis however, February new passenger vehicle sales were 2.0% lower than the 354 vehicles sold a year ago. Year-to-date, passenger vehicle sales rose to 638, reflecting lower annual sales than the preceding 9 years, and an 8.3% decline from February 2019. On a rolling 12-month basis, passenger vehicle sales are at their lowest level since January 2011, highlighting the severity of the slowdown in sales.

A total of 452 new commercial vehicles were sold in February, representing an increase of 18.9% m/m and 13.9% y/y. 386 Light commercial vehicles, 21 medium commercial vehicles, and 45 heavy and extra heavy commercial vehicles were sold during the month. Light commercial vehicle sales rose 10.0% y/y, medium commercial vehicle sales rose 50.0% y/y and heavy commercial vehicle sales increased by 40.6% y/y. On a twelve-month cumulative basis, light commercial vehicle sales have declined by 12.4% y/y, medium commercial vehicles rose by 14.2% y/y, and heavy commercial vehicles rose 17.1% y/y. While the positive 12-month growth in medium- and heavy commercial vehicle sales is positive news, the growth is from a very low base.

During February, Toyota overtook Volkswagen in terms of year-to-date market share of new passenger vehicles sold. Toyota claimed 29.6% of the market, followed closely by Volkswagen with 28.8% of the market. They were followed by Kia and Hyundai with 7.8% and 6.4% of the market respectively, while the rest of the passenger vehicle market was shared by several other competitors.

On a year-to-date basis Toyota remained the leader in the light commercial vehicle space with a 57.0% market share, with Nissan in second place with a 16.4% market share. Ford and Isuzu claimed 8.6% and 6.2%, respectively, of the number of light commercial vehicles sold thus far in 2020. Mercedes leads the medium commercial vehicle segment with 37.1% of sales year-to-date, while Scania was number one in the heavy and extra-heavy commercial vehicle segment with 22.4% of the market share year-to-date.

The Bottom Line

While the number of new vehicles sold in February is higher than the number sold in the prior two months, the cumultative number of new vehicles sold continues to decline on a rolling 12-month basis, and is trending at the lowest level in ten years. The downward trend in vehicle sales is likely to continue for the rest of the year as there are no indicators that economic conditions will improve substantially any time soon. Historical data indicates that new vehicle sales typically pick-up somewhat in March, however we are of the view that the increase in sales for the month will be relatively small. Recent new vehicle sales figures suggest that vehicle owners are either holding on to the vehicles they already own or purchasing second hand and imported vehicles.

A total of 671 new vehicles were sold in January, which represents 6.0% m/m decrease from the 714 vehicles sold in December, and a drop of 1.0% from the 678 new vehicles sold in January 2019. On a twelve-month cumulative basis, a total of 10,394 new vehicles were sold as at January 2020, representing a contraction of 11.4% from the 11,733 sold over the same period a year ago. 2020 is thus off to sluggish start as illustrated by the lowest monthly new vehicles sales number since May 2009.

291 new passenger vehicles were sold during January, a contraction of 7.3% m/m from the 314 passenger vehicles sold in December, and a decline of 14.9% y/y from the 342 new passenger vehicles sold in January 2019. On a rolling 12-month basis, new passenger vehicle sales fell 1.1% m/m and 10.6% y/y at the end of January, and were down 54.2% from the peak in April 2015.

Commercial vehicle sales declined to 380 units in January, representing a contraction of 5.0% m/m, but an increase of 13.1% y/y. During the month 335 light commercial vehicles, 14 medium commercial vehicles, and 31 heavy commercial vehicles were sold. On a year-on-year basis, light commercial sales have increased by 11.3%, medium commercial vehicles were flat, and heavy and extra heavy vehicle sales rose 47.6% y/y. On a twelve-month cumulative basis, light commercial vehicle sales have declined by 14.9% y/y, medium commercial vehicles rose by 9.0% y/y, and heavy commercial vehicles sales rose 17.6% y/y.

Volkswagen started the year off with a 32.6% market share of new passenger vehicles sold, followed by Toyota with a 21.3% market share. They were followed by Kia and Hyundai with 8.9% and 7.9% of the market respectively, while the rest of the passenger vehicle market was shared by several other competitors.

Toyota meanwhile started the year off with a solid grip on the light commercial vehicle market with a 57.6% market share, with Nissan in second place with a 15.5% market share. Ford and Volkswagen claimed 9.6% and 5.1% of the number of new light commercial vehicles sold during the month, respectively. Mercedes lead the medium commercial vehicle category with 42.9% of sales, while Volvo was number one in the heavy and extra-heavy commercial vehicle segment with 25.8% of the market share during the month.

The Bottom Line

Cumulative new vehicle sales fell to the lowest level in ten years on a rolling 12-month basis. This is a consequence of the incessant recessionary environment we find ourselves in, which is characterised by depressed business and consumer confidence, as well as lower government spending. The low sales figures show that both consumers and businesses continue to face economic hardship, with many preferring to hold on to their existing vehicles for longer, or opting to buy second-hand vehicles instead. The prospects for new vehicle sales in 2020 are likely to remain dim as economic conditions are expected to remain difficult for the rest of the year.

714 New vehicles were sold in December, down 18.4% m/m from the 875 vehicles sold in November, and a decrease of 2.2% y/y from the 730 new vehicles sold in December 2018. Year-to-date 10,401 vehicles have been sold, a 12.6% contraction from December last year and the lowest annual vehicle sales figure since 2009. Of the 10,401 new vehicles sold during the year, 4,550 were passenger vehicles, 5,101 were light commercial vehicles, and were 750 medium and heavy commercial vehicles.

A total of 314 new passenger vehicles were sold during December, representing a 9.5% m/m contraction, but a 1.3% y/y increase. 4,550 passenger vehicles were sold in 2019, a 10.7% decline from 2018 and lower annual sales than the preceding nine years. Passenger vehicle sales made up 43.7% of the total number of new vehicles sold during 2019, broadly in line with the trend over the last 5 years.

Commercial vehicle sales declined to 400 units in December, a 24.2% m/m, and 4.8% y/y contraction. During the month 335 light commercial vehicles, 21 medium commercial vehicles, and 44 heavy commercial vehicles were sold. On a year-on-year basis, light commercial sales have declined by 12.3%, medium commercial vehicles rose by 90.9%, and heavy and extra heavy vehicle sales rose 37.5% y/y. On a twelve-month cumulative basis, light commercial vehicle sales dropped 17.1% y/y, while medium commercial vehicle sales rose 9.0% y/y, and heavy commercial vehicle sales rose 17.5% y/y.

Volkswagen lead the market for new passenger vehicle sales in 2019, claiming 30.5% of the market, followed by Toyota with a 28.3% share. They were followed by Kia and Mercedes at 5.8% and 5.5% respectively, while the rest of the passenger vehicle market was shared by several other competitors.

Toyota remained the leader in the commercial vehicle space in 2019 with 57.3% market share, with Nissan in second place with a 12.4% share. Ford and Isuzu claimed 9.3% and 7.6% respectively of the number of new light commercial vehicles sold for the year. Hino lead the medium commercial vehicle category with 39.8% of sales while Scania was number one in the heavy and extra-heavy commercial vehicle segment with 35.5% of the market share during the year.

The Bottom Line

New vehicle sales figures were quite dismal in 2019 with the cumulative number of new vehicles sales for the year amounting to 10,401, a decline of 12.6% from the cumulative number of vehicles sold in 2018 and a 54.1% contraction from the peak, on a cumulative 12-month basis, of 22,664 new vehicle sales recorded in April 2015. We expect new vehicle sales to remain under pressure in 2020 as there is little sign that the economy will show any meaningful growth. December new vehicle sales have historically been low when compared to most other months, but 2019’s December figure was the lowest since 2008, showing just how badly the ongoing recession has impacted demand and investment.