This Week In The News

NEWS IN SHORT

Toyota has recalled more than 43,000 pickup trucks in the US over defects that could increase the risk of a car crash. The Japanese automaker recalled 43,395, 2023-2024, Sequoia Hybrids sold in the US after identifying a risk with the vehicles’ tow hitches.
Ford South Africa has announced pricing for the highly anticipated new seventh-generation Mustang GT Fastback 5.0L V8 10AT: R1 300 000 VAT included.
In 2023, one in five cars sold worldwide was an electric vehicle.
Research has found that the DRC can influence the shape of the cobalt market, in which it is the single largest producer. Cobalt is a very important metal. It reduces overheating in batteries and is essential in the manufacture of electric vehicles.

Collen Msibi, spokesperson for the National Department of Transport (DoT), has confirmed that the current backlog for driver’s licence renewals in South Africa is sitting at approximately 380,000 applications

On 27 August 2024, ACSA ended its contract with Idemia for Automated Border Control services and subsequently launched an investigation into the biometrics company for alleged maladministration. Four days later, DoT named Idemia as the preferred bidder for the country’s new driver’s licence cards, raising several eyebrows in the process. Two years and several missed deadlines later, and South Africa still does not have a new driver's licence card printing machine.

August 2024 SALES DATA- USED CARS

TOP 10 DERIVATIVES USED CARS

VOLKSWAGEN - POLO VIVO 1.4 TRENDLINE (5DR)
NISSAN - NP200 1.6 A/C SAFETY PACK P/U S/C
FORD - RANGER 2.2TDCI XL P/U D/C
SUZUKI - ERTIGA 1.5 GA
VOLKSWAGEN - POLO VIVO 1.4 COMFORTLINE (5DR)
VOLKSWAGEN - POLO 1.0 TSI COMFORTLINE
CHERY - TIGGO 4 PRO 1.5 LIT CVT
RENAULT - KWID 1.0 DYNAMIQUE / ZEN 5DR
CHERY - TIGGO 4 PRO 1.5 LIT
RENAULT - TRIBER 1.0 DYNAMIQUE / ZEN

THE 5 BEST USED CAR SELLERS

TOYOTA
FORD
VOLKSWAGEN
BMW
MERCEDES-BENZ

TOP 3 USED COMMERCIAL / BAKKIE SALES

NISSAN - NP200 1.6 A/C SAFETY PACK P/U S/C
FORD - RANGER 2.2TDCI XL P/U D/C
FORD - RANGER 2.2TDCI XL A/T P/U D/C

Average age of used vehicles: 6 Years

AutoTrader’s Mid-Year Car Industry Report.

According to the report, 172,668 used cars were sold by the end of June 2024, marking a 2.2% increase compared to the previous year.

In contrast, new car sales fell by 6.9% during the same period, with a total of 161,981 passenger cars sold.
Within the new car market, South Africans are increasingly turning to budget-friendly alternatives, with Chinese brands and Suzuki seeing a surge in popularity

The impact of this trend is most visible in the shrinking market share of luxury brands like BMW, Audi, and Mercedes-Benz, whose sales have been steadily declining over the past decade.

Audi, for example, saw its sales drop from 18,375 vehicles in 2014 to just 6,259 in 2023.

BMW and Mercedes-Benz have experienced similar declines, with their combined sales more than halving over the same period.

Car leasing and subscriptions

The trend within the automotive industry to look out for this year will be the emergence of more car leasing and car subscriptions options. As consumers seek more adaptable lifestyles and, as businesses look for ways to reduce fleet costs, these models could disrupt the traditional purchasing and financing structures during 2024.

These financial models – which offer flexibility and convenience, with the added benefit of not having to commit to a long-term investment – are innovative alternatives to traditional car ownership. Leasing allows the consumer to drive a new car every few years without the hassle of selling it later. Car subscriptions, on the other hand, take this a step further by bundling insurance, maintenance, and sometimes even fuel into one monthly payment.

Subscription and leasing also solves a need in the subprime consumer category.

Volkswagen launch all new Tiguan
Retail Prices (VAT and emissions tax included)

Tiguan 1.4	TSI 110kW DSG	R651 500
Tiguan Life	1.4 TSI 110kWDSG	R702 800
Tiguan R-Line	1.4 TSI 110kWDSG	R766 300
Tiguan 2.0	TDI 110kW 4M DSG	R755 700
Tiguan 2.0	TDI 110kW 4M DSG	R834 800

New Tiguan 12

The Volkswagen Tiguan comes standard with a 3 year / 120 000 km warranty, 5 year / 90 000 km EasyDrive Service Plan including a 12-year anti corrosion warranty. The service interval is 15 000 km.

“Should I go Chinese or not? “

China's auto industry is entering a new era. After surpassing Japan as the world's largest exporter in the automobile industry in 2023, the industry has grown rapidly in recent years backed by strong global interest in electric vehicles, driving further exports.

Considering Chinese cars as a retailer in South Africa could be a promising venture for several reasons:

Competitive Pricing: Chinese vehicles often offer good value for money, which could appeal to cost-conscious consumers in South Africa.
Variety: The range of models, from economy to luxury and electric vehicles, could attract a diverse customer base.
Growing Market: The South African market for cars is expanding, and Chinese automakers are increasing their presence globally.
Government Incentives: Check if there are any incentives or support from the South African government for selling electric or fuel-efficient vehicles, which some Chinese brands focus on.

However, you should also consider:

Brand Perception: Chinese cars are still working on building their reputation in South Africa. You'll need to assess how potential customers perceive these brands.
After-Sales Service: Reliable after-sales service and parts availability are crucial. Ensure that you have a strong support network for maintenance and repairs.
Regulatory Compliance: Make sure the vehicles meet South African safety and emissions standards.
Competition: Evaluate how the Chinese brands will stack up against established brands in terms of quality, reliability, and customer preferences.

Due Diligence: Make sure that the manufacturer you choose is sustainable and of good standing in the world market. Your Bankers would be a good starting point as they would have done most of the due diligence before granting finance facilities

Conducting market research and possibly starting with a limited range of models to test the waters might be a prudent approach.

Nissan has unwrapped the next-generation Patrol

Nissan Y63 Patrol 02