Category Archives: Vehicle Sales

New vehicle sales of 1,094 units were recorded in August, with sales falling by 19.9% from the 1,366 new vehicles sold in August 2016. On a m/m basis, new vehicle sales fell by 18.7%, with August recording 252 less in sales than July. Year to date, 9,272 vehicles have been sold, 21.4% less than sales recorded in the corresponding period of 2016. Of the 9,272 vehicles sold this year, 3,978 were passenger vehicles, 4,848 were light commercial vehicles, and 446 were medium and heavy commercial vehicles.

Passenger vehicle sales fell by 24.5% y/y, to 400 vehicles, while commercial vehicle sales have fell by 17.0% y/y. Of the 694 commercial vehicles sold in August: 650 were classified as light, 12 as medium and 32 as heavy. Heavy commercial vehicle sales contracted by 25.6% y/y. The highest volume for this calendar year so far, was the sales in June of 83 units, which provided some optimism as increased capital spending pointed toward improving business confidence. Light commercial vehicles sales make up the bulk of this category’s sales, reporting a decline of 15.7% m/m and falling 15.1% y/y.

On a twelve-month cumulative basis, vehicle sales remain under pressure, contracting by 24.4% y/y. Instalment credit, which is mainly used to finance vehicle purchases, has slowed considerably. Although, instalment credit increased by 0.5% m/m in July, this followed six months of consecutive m/m declines, bringing the annual growth to -1.4% y/y.

Year to date, Toyota and Volkswagen continue to maintain their strong hold on the passenger vehicle market. Based on the number of new vehicles sold, claiming 36% and 25% of the market respectively. They were followed by Ford and Mercedes at 7% and 4% respectively, while the rest of the passenger vehicle market continues to be shared by several competitors. Toyota also remains the leader in light commercial vehicle sales with 47% of the market, followed by Nissan at 16%. Ford and Isuzu claimed 12% and 9% of the number of light commercial vehicles sold in 2017.

Hino leads in medium commercial vehicles with 33% of the market, with Iveco following with 27%. In the heavy and extra heavy category, Scania and Mercedes have sold the most vehicles, claiming 29% and 17% of the market respectively. UD Trucks came in at third, with 14% of the number of vehicles sold in this category in 2017.

The Bottom Line

Overall vehicle sales are under pressure and have been since late 2015. The Private Sector Credit Extension (PSCE) growth figures prove testament to waning consumer and business confidence and an already stretched consumer as instalment credit, mainly used to finance capital goods, remains sluggish. The amendments to the Credit Agreement Act had a significant effect on consumer spending as well. Bearing in mind that government is still in its fiscal consolidation cycle with no with little to no plans to increase capital expenditure in sight. Vehicle sales showed signs of slight improvement the previous three months before slumping by 18.7% m/m, and is likely to remain subdued going forward.

Vehicle sales of 1,346 units was recorded in July, with overall sales falling by 12.8% from the 1,544 new vehicles sold in July 2016, and a 10.3% m/m increase on the 1,220 vehicles sold in June. Year to date, 8,178 vehicles have been sold, 22% less than the corresponding period in 2016. Of the 8,178 vehicles sold this year, 3,578 were passenger vehicles, 4,198 were light commercial vehicles, and 402 were medium or heavy commercial vehicles.

Passenger car sales have decreased by 15.7% y/y, to 533 cars, while commercial vehicle sales have declined by 10.9% y/y. Of the 813 commercial vehicles sold in July: 771 were classified as light, 12 as medium and 30 as heavy. Heavy commercial vehicle sales contracted by 50.8% y/y after showing an uptick y/y of 66.0% in June, which did provide some optimism as increased capital spending pointed toward improving business confidence. Light commercial vehicles was the standout performer this month, exhibiting a positive monthly increase in sales of 29.6%, although still down 8.1% y/y.

On a twelve-month cumulative basis, vehicle sales continue to wane, contracting by 23.8% y/y. Installment credit, which is mainly used to finance vehicle purchases, has slowed considerably. Instalment credit advances contracted by 0.7% y/y in June, entering negative territory for the first time in our database.

Year to date Toyota and Volkswagen continue to hold a strong market share in the passenger vehicle market based on the number of new vehicles sold, claiming 36% and 26% of the market respectively. They were followed by Ford and Mercedes at 6% and 4% respectively, while the rest of the passenger vehicle market continues to be shared by several competitors. Toyota also remains the leader in light commercial vehicle sales with 47% of the market, followed by Nissan at 17%. Ford and Isuzu claimed 12% and 9% of the number of light commercial vehicles sold in 2017.

Hino leads in medium commercial vehicles with 31% of the market, with Iveco marginally less with 30%. In the heavy and extra heavy category, Scania and Mercedes have sold the most vehicles, claiming 29% and 18% of the market respectively. UD Trucks came in at third, with 15% of the number of vehicles sold in this category in 2017.

The Bottom Line

Overall vehicle sales remained sluggish in July, continuing on almost the same trend as in 2016, showing some positive signs before trending downwards midway through the year. Continued fiscal tightening, evident through lower government spending on capital assets, slower economic growth, waning consumer discretionary income as well as the credit agreement act have been the main impediments on new vehicles sold. Positive heavy vehicle sales figures in June have this month been supported by encouraging sales data for light commercial vehicles, though overall vehicle sales for 2017 remain under pressure. While there has been a sizable increase in total vehicle sales since April this year, year-to-date and year-on-year data is still depressed compared to previous years.

Vehicle sales remained lacklustre in June with 1,120 vehicles sold. This is a 24.0% decrease from the 1,606 vehicles sold in June of 2016 and a 3.5% m/m increase on the 1,179 vehicles sold in May. Year to date, 6,832 vehicles have been sold, 23.4% less than the corresponding period in 2016, making 2017 the slowest year for car sales since 2012. Of the 6,832 vehicles sold this year, 3,045 were passenger vehicles, 3,427 were light commercial vehicles, and 360 were medium or heavy commercial vehicles.

The declining trend in vehicle sales has been well established, contracting on a year on year basis since mid-2015. Passenger sales have decreased by 19.3% y/y, to 519 cars, while commercial sales have declined by 27.2% y/y. Of the 701 commercial automobiles sold in June: 595 were classified as light, 23 as medium and 83 as heavy. The uptick in heavy commercial vehicles, a 66.0% y/y increase on June 2016, is a positive signal as increased capital spending is a sign of improving business confidence. However, light and medium commercial vehicles remain in contractionary territory decreasing by 32.9% and 11.5% respectively.

On a twelve-month cumulative basis, vehicle sales have declined by 24.1%. Instalment credit, which is mainly used to finance vehicle purchases, has also been slowing considerably. Instalment credit advances grew by only 1.3% y/y in May, the lowest level on our records.

Year to date Toyota and Volkswagen continue to hold a strong market share in the passenger vehicle market based on the number of new vehicles sold, claiming 37% and 27% of the market respectively. They were followed by Ford and Mercedes at 6% and 4% respectively, while the rest of the passenger vehicle market continues to be shared by several competitors. Toyota also remains the leader in light commercial vehicle sales with 47% of the market, followed by Nissan at 15%. Ford and Isuzu claimed 12% and 10% of the number of light commercial vehicles sold in 2017.

Iveco is the leader of medium commercial vehicles with 31% of the market followed by Hino at 30%. In the heavy and extra heavy category, Scania and Mercedes have sold the most vehicles, claiming 27% and 17% of the market respectively. However, after a strong month, UD Trucks came in at a close third, cornering 16% of the number of vehicles sold in 2017.

The Bottom Line

Vehicle sales remained sluggish in June continuing the trend of the last two years. The reasons for the slowdown in sales have been well documented, lower government spending on capital assets, slower economic growth and disposable incomes as well as the credit agreement act have been identified as the main dampers on new vehicles sold. However, with some green shoots starting to appear in the local economy and the encouraging uptick in heavy commercial vehicle sales, as well as base effects, the current climate may improve over the coming year.