This Week In The News

NEWS IN SHORT

• The South African National Roads Agency (Sanral) has revealed that it met and surpassed all the goals it set for itself in the 12 months in the 2023/24 financial year. Between April 2023 and March 2024, the agency spent a collective R27.1 billion on road projects and maintenance, split between R4.1 billion on toll roads which comprises 6% of its entire network and R23 billion on non-toll roads which account for 89% of its portfolio.
  
  
• South African motorists enjoy a 21-day grace period before they are fined for driving with an expired car lisence disc.
  
  
• The car sport known as “spinning” has received a R5-million boost from government in South Africa. Minister of Sports, Arts, and Culture, Gayton McKenzie, recently announced that the multi-million-rand injection will contribute towards an ongoing effort to promote the niche sport.
  
  
• Petrol outlets selling contaminated diesel are still a concern in 2024, and these businesses are warned that an aggressive campaign of random fuel testing is still ongoing to root out this illegal practice.

• Reserve Bank officials noted in their semi-annual monetary policy review published Tuesday that pricing in financial markets signals another quarter-point cut next month at the central bank’s last policy meeting of the year. Officials will deliver their rate decision on November

• South Africa’s state-owned power utilities said it had to ask for 36% increase in prices because of the government’s inability to rein in delinquent municipalities and errors made by the regulator in adjudicating earlier applications to boost tariffs.

• Two South African schools included in top global private schools list. Michaelhouse and Bishops Diocesan College were included in the list of the top 150 private schools in the world.

South African car buyers are going green – but not electric.

South African car buyers are increasingly opting for more eco-friendly vehicles, but they are staying away from those running purely on electricity.

Sales data from the new and used sectors indicate that hybrid vehicles (HEVs) are continually gaining traction in the country, whereas battery-electric cars (BEVs) are struggling to appeal to the masses.

This comes amidst a global cooling in demand for BEVs with many automakers reassessing their future strategies concerning the discontinuation of their petrol and diesel models.

 

Banxso trading platform’s license withdrawn and bank accounts seized

The Financial Sector Conduct Authority (FSCA) has provisionally withdrawn Banxso’s licence to operate, and the Financial Intelligence Centre (FIC) has placed a hold on seven of its bank accounts.

The National Prosecuting Authority (NPA) has also successfully applied a preservation order for the funds in the seven bank accounts.

Banxso has been under fire for “benefiting” from deep fake ads featuring billionaires Elon Musk, Johann Rupert and Nicky Oppenheimer. Some investors who clicked on the ads have reported losses totaling millions.

The company also had high-profile sponsorships with Bafana Bafana and Dricus du Plessis. The FSCA began investigating the company earlier in April 2024 for possible contraventions of financial sector laws following complaints regarding Banxso’s conduct. 

This followed reports that Banxso appeared to be profiting from ‘deepfake’ adverts, which promised profits of up to R300,000 a month from an investment of R4,700.

Why don't we learn from History? Primarily because we don't want to.

 

Golden Rules for addressing MIOSA complaints

When addressing complaints received from MIOSA, dealerships should follow these essential steps:

1. Assist the Consumer: Gather all necessary information regarding the complaint.
2. Vehicle Assessment: Have the vehicle evaluated by an accredited service provider (e.g., RMI) and obtain a detailed report.
3. Expert Assessment: If disputes arise regarding failures or defects, secure an expert assessor's report to verify any dealership suspicions (e.g., negligence or consumer misuse). Reports from warranty companies can also be beneficial in specific cases.
4. Documentation: Include all assessment reports when responding to MIOSA complaints to support the dealership's defense. This documentation is crucial if the case escalates to the Tribunal or court.
5. Wear and Tear: It's important to approach the concept of "wear and tear" with care. This term often refers to the normal deterioration of a vehicle that occurs over time and through regular use. While wear and tear can be a valid defense, it should be applied judiciously and with a nuanced understanding of its implications
6. Consumer Responsibility: Consumers are responsible for servicing their vehicles as per the manufacturer’s guidelines.
7. Misuse and Negligence: Dealerships are not liable for damage resulting from consumer misuse or negligence. Ensure that evidence supports any claims in this regard.
8. Consumer Protection Act (CPA): Understand that the custodians of the CPA tend to favor consumer interests in complaints, emphasizing the importance of having proven facts ready when addressing issues. Note that MIOSA will reference the CPA in their evaluations.
9. Emotional Tone: Please maintain a neutral tone in all responses, avoiding emotional language to uphold the dealership's position. Focus on addressing the complaint directly rather than centering on the client.
10. Final Inspection: Conduct a thorough final inspection in the consumer's presence during vehicle delivery. Document and have the consumer sign off on this inspection to prevent disputes over items like spare wheels, jacks, windscreens and cosmetic blemishes. Do not use this report as a tick sheet exercise.

 

New Ford Transit Custom Sport

Ford has expanded the Transit Custom range in South Africa with a new Sport derivative following the introduction of the Panel Van model in April.

The Transit Custom Sport sells for R932,500 and is sold exclusively in the short-wheelbase body style (SWB) whereas its commercially-focused sibling comes in long-wheelbase (LWB).

Like the Panel Van, the Transit Custom Sport is driven by a 2.0-litre, turbo-diesel mill, however, it has been tuned to produce 125kW and 390Nm which reflects an increase of 25kW and 30Nm, respectively, versus its sibling.

Capitec’s new banking competitor

Old Mutual’s bank, currently called OM Bank, will launch in early 2025 and directly compete with Capitec in the lower-income segments.

However, while it is the only bank to explicitly state its intention to compete with Capitec, it is not the only new competitor coming from an insurer.

Other competitors include significant players in the banking space, such as Discovery Bank and TymeBank.

One thing all these new offerings have in common is that they have been launched by insurers, with Sanlam providing capital for TymeBank through its shareholding in African Rainbow Capital Investments.

 

The Changing Landscape of Consumer Behavior

Over the past decade, consumers have become accustomed to the convenience and speed that digital services offer in nearly every aspect of their lives. Shopping for clothes, groceries, and electronics — all can now be done with a few clicks. Car buyers, too, are shifting expectations.

Research shows that over 80% of car buyers now begin their purchasing journey online. They spend hours browsing websites, reading reviews, comparing prices, and exploring different models before even stepping foot into a showroom.

The increasing importance of online reviews, ratings, and detailed product information has fundamentally altered the decision-making process. Customers are more informed than ever and expect a seamless, personalized experience, much like they get from Checkers Sixty60, Amazon or Takealot. The more convenient the process, the more likely a sale is to happen — a reality that dealerships can no longer ignore.

 

Conclusion:

The automotive industry is at a crossroads. Consumers are demanding more convenience, more personalization, and more transparency in their buying journeys. Dealerships that ignore this shift toward digital sales are not just missing an opportunity—they’re jeopardizing their future viability.

As the digital marketplace continues to grow, dealerships must embrace new technologies that enhance the customer experience, from personalized online tools to a more streamlined buying process. Those who can successfully navigate this digital transformation will not only survive—they will thrive in an increasingly competitive market.

In short, the message is clear: car sales must go digital, or risk becoming irrelevant. The future is already here, and it’s online.

 

BMW says EU petrol and diesel vehicle ban ‘no longer realistic’

Europe’s plan to effectively ban the sale of combustion-engine cars from 2035 will lead to a “massive shrinking” of its automotive industry, according to BMW CEO Oliver Zipse.

Warning that the continent isn’t ready to ditch petrol and diesel engines, Zipse said on Tuesday at the Paris Automotive Summit that the EU’s plans “are no longer realistic” and that subsidies for electric vehicles are “unsustainable”.

That industry is at risk, especially as car makers shift to electric models that require fewer and different inputs. The shift is proving a challenge for Europe’s motoring industry, which has struggled to cope with the removal of government subsidies and intensifying competition from Chinese EV makers like BYD.

South Africa weighs subsidies and rebates to boost electric car sales

South Africa is considering introducing incentives to encourage local manufacturing of electric vehicles and offering tax rebates or subsidies to promote their usage, President Cyril Ramaphosa said.

“This is not just about creating a greener future, but also about ensuring South Africa remains competitive in the global markets as many of our major trading partners rapidly shift toward EVs,” he said in a speech at Naamsa | The Automotive Business Council’s South African Auto Week conference in Cape Town on Thursday.