INSIDE YOUR POCKET - Vehicle sales growing, but storm clouds loom, warns TransUnion

Loading player...
GUEST – Kriben Reddy - Vice president of Auto Information Solutions at TransUnion Africa)

South Africa’s automotive industry shrugged off ongoing vehicle price inflation, declining consumer credit health and looming macro-economic storm clouds to record an increase in vehicle sales in the fourth quarter of 2022 – but all indicators suggest a tough year ahead.

This is according to the latest findings from TransUnion’s Q4 2022 Vehicle Pricing Index (VPI), that showed that the new vehicle index jumped from 2% in Q4 2021 to 7% in Q4 2022, with used vehicles moving from 7% to 9.1% in the same period. The findings show that:

• The number of financial agreements in the passenger vehicle market in Q4 increased by 1.5% year-on-year, with new vehicle deals surging by 13% and used vehicle deals decreasing by 3.4%

• A year ago, 2.31 used vehicles were sold for every new vehicle; in Q4 2022, this declined to 1.98. In the used vehicle market, 20% of cars sold were less than two years old

• Demo models financed made up to 4% of used financed deals, which indicates consumers are opting for older vehicles wherever possible, while car prices and pressure on disposable income increase

• The number of purchasers for hybrid and electric models grew 10 times for hybrids and six times for electric in 2022

• Consumers between the ages of 26 and 40 bought nearly 46% of all vehicles financed, of which 73% were used
1 Mar 2023 3PM English South Africa Business News · Investing

Other recent episodes

One Year Into The Two-Pot System: How Much Have South African’s Withdrawn?

Guest - Nzwa Shoniwa, Managing Executive: Sanlam Umbrella Solutions From 1 September 2024 to 31 August 2025, Sanlam Corporate paid out approximately R4 billion across 223 000 emergency-pot claims with R1 billion in tax flowing to SARS. On average, we are paying out about R150 million a month, but when…
11 Sep 10AM 14 min

Discovery Group Delivers 30% Rise In Profits

Guest - Hylton Kallner, CEO of Discovery South Africa and Discovery Bank Discovery has delivered record results, posting a 30% surge in profit and entering a new phase of scaled growth with its two main composites, Discovery South Africa and Vitality. We’re joined by Hylton Kallner, CEO of Discovery South…
11 Sep 9AM 18 min

FirstRand Post 10% Rise In Earnings And An Impressive 20% Return On Equity

Guest – Mary Vilakazi – CEO of FirstRand South Africa’s largest banking group, FirstRand, has posted a 10% rise in earnings and an impressive 20% return on equity – well above peers – despite economic headwinds. In this episode, we speak to Mary Vilakazi, the Group CEO, about what drove…
11 Sep 9AM 16 min

What Tractor Sales Tell Us About The State Of Agriculture In South Africa?

Guest – Thabile Nkunjana, Agricultural Economist Agricultural Machinery Sales indicate that August tractor sales of 700 units were 22% more than the 572 units sold in August last year. There have been welcome reactions from agricultural associations about the increase in machinery sales.
10 Sep 10AM 20 min