South Africa’s car market has shifted: here’s what to expect in 2022

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Data from the National Association of Automobile Manufacturers of South Africa (Naamsa) shows that the new vehicle market declined during December 2021, capping a year of challenges that included additional Covid-19 waves and variants, and several domestic socio-economic issues.

Following the massive Covid-19 pandemic-related decline in new vehicle sales of 29.2% from 536,612 units in 2019 to 380,206 units in 2020, the new vehicle market reflected a strong rebound increasing year-on-year by 22.1% to 464,122 units in 2021.

Economic disruptions include July 2021’s civil unrest, a cyberattack on Transnet operations, a three-week strike in the steel and engineering sector, the adjusted alert level 4 lockdown restrictions during the second half of the year as well as record fuel prices and a first interest increase in three years.

However, Naamsa said that Covid-19 has increased the levels of uncertainty and its effects will be felt for years to come. “Load shedding will remain an area of great concern in 2022, limiting the economy’s ability to reach full capacity. Furthermore, the realities of rising interest rates and fuel prices are expected to impact vehicle affordability as household budgets remain under pressure, dimming the hopes of a further strong recovery in the economy any time soon,” it said.

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