Category Archives: Vehicle Sales

741 New vehicles were sold in February, an increase of 11.3% m/m from the 666 vehicles sold in January. This is however 27.7% lower than the 1,025 new vehicles sold in February 2018. Two months into 2019, 1,407 new vehicles have been sold of which 674 were passenger vehicles, 652 light commercial vehicles, and 81 medium and heavy commercial vehicles. The first two months of 2018 saw 1,876 new vehicles sold. On a twelve-month cumulative basis, a total of 11,437 new vehicles were sold as at February 2019 representing a contraction of 11.2% from the 12,873 sold over the comparable period a year ago.

A total of 344 new passenger vehicles were sold during February, increasing by 4.2% from the 330 passenger vehicles sold in January. On a year-on-year basis however, February new passenger vehicle sales were 31.6% lower than the 503 vehicles sold a year ago. Year-to-date, passenger vehicle sales rose to 674, reflecting lower annual sales than the preceding 8 years, and a 25.7% decline from February 2018. 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.

Commercial vehicle sales reflect a similar picture, declining by 24.4% year-to-date and 10.7% y/y on a rolling 12-month basis. A total of 397 new commercial vehicles were sold in February, representing an increase of 18.2% m/m, but a contraction of 23.9% y/y. 351 Light commercial vehicles, 14 medium commercial vehicles, and 32 heavy and extra heavy commercial vehicles were sold during the month. Light commercial vehicle sales have dropped 27.5% y/y, while medium commercial vehicle sales fell 26.3% y/y, and heavy and extra heavy sales rose 68.4% y/y. On a twelve-month cumulative basis, light commercial vehicle sales dropped 11.9% y/y, while medium commercial vehicle sales rose 10.1% y/y, and heavy commercial vehicle sales fell 2.9% y/y. This is the fifth consecutive month that medium commercial sales have showed positive growth on a twelve-month cumulative basis.

During February, Volkswagen overtook Toyota in terms of year-to-date market share of new passenger vehicles sold. Volkswagen claimed 30.7% of the market, followed closely by Toyota with 28.3% of the market. They were followed by Ford and Mercedes with 6.5% and 6.1% of the market respectively, while the rest of the passenger vehicle market was shared by several other competitors.

Toyota remained the leader in the light commercial vehicle space with a 68.4% market share, with Ford in second place with an 8.3% market share. Volkswagen and Isuzu claimed 6.6% and 4.4%, respectively, of the number of light commercial vehicles sold thus far in 2019. Hino leads the medium commercial vehicle segment with 35.7% of sales while Scania was number one in the heavy and extra-heavy commercial vehicle segment with 34.0% of the market share year-to-date.

The Bottom Line

New vehicle sales remained dismal in February as 12-month cumulative new vehicle sales have declined by 11.2% y/y to 11,437 at the end of February. While historical data indicates that new vehicle sales typically pick up somewhat in March, we are of the view that the increase in sales for the month will be small as both consumer and business confidence remain depressed and as such, the prospects for new vehicle sales remain dim in the short- to medium-term. Recent new vehicle sales figures suggest that vehicle owners are holding on to the vehicles they already own or purchasing second hand and imported vehicles.

A total of 666 new vehicles were sold in January, which represents an 8.8% m/m decrease from the 730 vehicles sold in December, and a drop of 21.7% from the 851 new vehicles sold in January 2018. On a twelve-month cumulative basis, a total of 11,721 new vehicles were sold at January 2019 representing a contraction of 9.9% from the 13,007 sold over the same period a year ago. 2019 is thus off to a sluggish start as illustrated by the lowest monthly sales number since May 2009.

330 new passenger vehicles were sold during January, 6.5% higher than the 310 passenger vehicle sales sold in December. From a year-on-year perspective however, January 2019 new passenger vehicle sales were 18.3% lower than the 404 sold a year ago. Passenger vehicle sales have been impacted by amendments to the Credit Act that requires tighter credit conditions, as well as by reduced government expenditure and depressed consumer confidence in the current economic climate.

Commercial vehicle sales declined to 336 units in January, representing a contraction of 20.0% m/m and 24.8% y/y. During the month 301 light commercial vehicles, 14 medium commercial vehicles, and 21 heavy commercial vehicles were sold. On an annual basis, light commercial sales have dropped by 21.2%, medium commercial sales rose by 27.3%, and heavy and extra heavy sales have declined by 22.2%. On a twelve-month cumulative basis, light commercial vehicle sales fell 11.2% y/y, while medium commercial vehicle sales rose 11.4% y/y, and heavy commercial vehicle sales dropped 7.3% y/y.

Toyota started the year off with a 31.5% market share of new passenger vehicles sold, followed closely by Volkswagen with a 30.0% market share. They were followed by Kia and Mercedes with 6.4% and 5.8% of the market respectively, while the rest of the passenger vehicle market was shared by several other competitors.

Toyota also started the year off with a firm grip on the light commercial vehicle market with a 75.7% market share, with Isuzu in second place with a 5.6% share. Ford and GWM claimed 4.7% and 3.7% of the number of new light commercial vehicles sold for the year, respectively. Hino and Mercedes jointly lead the medium commercial vehicle category, each with 28.6% of the sales, while Man was number one in the heavy and extra-heavy commercial vehicle segment with 47.6% of the market share in January.

The Bottom Line

12-month cumulative new vehicle sales have been declining since December 2015, amounting to 11,721 at the end of January, a decline of 48.3% from the peak of 22,664 cumulative new vehicle sales recorded in April 2015. While January new vehicle sales have historically been low when compared to most other months, 2019’s January figure was the lowest since 2006. The prospects for new vehicle sales remain dim in the short- to medium-term as government remains committed to fiscal consolidation and the economy remains in a recession, putting pressure on demand and investment.

732 New vehicles were sold in December, down 38.2% m/m from the 1,185 vehicles sold in November, and a decrease of 11.3% y/y from the 825 new vehicles sold in December 2017. Year-to-date 11,875 vehicles have been sold, a 9.0% contraction from December last year and the lowest annual vehicle sales figure since December 2010. Of the 11,875 new vehicles sold during the year, 5,067 were passenger vehicles, 6,147 light commercial vehicles, and 661 medium and heavy commercial vehicles.

A total of 312 new passenger vehicles were sold during December, down 20.8% m/m and 15.4% y/y. 5,067 passenger vehicle were sold in total in 2018, an 8.2% decline from 2017 and lower annual sales than the preceding seven years. Passenger vehicle sales made up 42.7% of the total number of new vehicles sold during 2018, broadly in line with the trend over the last 4 years.

Commercial vehicle sales declined to 420 units in December, a 46.9% m/m, and 7.9% y/y contraction. During the month 382 light commercial vehicles, 11 medium commercial vehicles, and 27 heavy commercial vehicles were sold. On a year-on-year basis, light commercial sales have declined by 5.0%, medium commercial sales rose by 37.5%, and heavy and extra heavy sales have declined by 41.3%. On a twelve-month cumulative basis, light commercial vehicle sales dropped 10.2% y/y, while medium commercial vehicle sales rose 8.6% y/y, and heavy commercial vehicle sales fell 8.3% y/y.

Toyota continued to lead the market for new passenger vehicle sales in 2018, claiming 33.4% of the market, followed by Volkswagen with a 28.5% share. They were followed by Hyundai and Kia at 5.8% and 5.0% respectively, while the rest of the passenger vehicle market was shared by several other competitors.

Toyota also remained the leader in the commercial vehicle space in 2018 with 56.1% market share, with Nissan in second place with an 18.8% share. Ford and Isuzu claimed 8.2% and 5.1% respectively of the number of new light commercial vehicles sold for the year. Hino lead the medium commercial vehicle category with 39.4% 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

The outlook for new vehicle sales remains bleak with the cumulative number of new vehicle sales for the year amounting to 11,875, a decline of 9.0% from the cumulative number of vehicles sold in 2017 and a 47.6% contraction from the peak of 22,664 new vehicle sales recorded in April 2015. The fact that the 12-month cumulative figure is hovering around 2011 levels is a consequence of the recessionary environment we find ourselves in, characterised by depressed business and consumer confidence, as well as lower government spending. December new vehicle sales have historically been low when compared to most other months as people go on holiday and dealerships close, but 2018’s December figure was the lowest since 2008, pointing to the ongoing impact of the current recession on demand and investment.