Super September for New Vehicle Sales
Passenger vehicle sales increased 7.5% year-on-year, with a total of 42 918 new cars sold. Light Commercial Vehicle (LCV) sales grew a staggering 24.7% compared to September last year, with 15 179 vehicle sold. Year-to-date, new vehicle sales are now down only 2.6%.
“This significant growth is unexpected, but definitely welcome,” says Rudolf Mahoney, head of research at WesBank. “While LCVs have sold incredibly well, the passenger car market has held its own, with sales being driven by demand for newly introduced models.”
Data from WesBank shows that activity in the vehicle market is at an all-time high, with a record total number of finance applications, at 130 484, a year-on-year increase of 21%. Of this increase, new vehicle applications increased by 7%, year-on-year, while used vehicle applications increased 29% over the same period.
September sales grew despite strong demand for used vehicles, new vehicle price inflation, and interest rate hikes. Along with new model introductions, manufacturers have invested heavily in marketing incentives, resulting in buyers bringing forward their replacement cycles.
Currently, the used-to-new vehicle ratio is at 1.42:1, representing an increase of 16%, year-on-year for used vehicle sales.
“We have experienced some resilience in the market over the past three months,” said Mahoney. “September sales are the first positive month of growth this year and by far the best-performing month by volume, returning the market to levels more in line with our expectations and forecast.”