“November marked another robust month for passenger car sales, fuelled by growing consumer demand and bolstered by a strong contribution from the rental market, which accounted for 19.5% of passenger car sales. This surge resulted in an 8.1% year-on-year increase in total November sales,” said Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA), after reviewing the sales report released today by naamsa | The Automotive Business Council.
“November is traditionally challenging for the motor industry, as many consumers postpone purchases until January to benefit from new-year registrations or await year-end bonuses, typically paid in December. Despite these factors, dealers have navigated the month with careful strategies, considering the competitive environment,” Cohen added.
Total sales for November reached 48,585 units, with passenger cars leading the charge. The segment grew by 20%. However, the overall market remains subdued, with year-to-date sales of 474,469 units, 3.5% lower than the same period in 2023.
“The commercial vehicle market continues to reflect the economic challenges facing businesses,” explained Cohen. “Light commercial vehicle sales fell by 16.3% compared to November last year (although they are slightly up on October 2024), while medium trucks dropped 9.2%. Heavy trucks and buses performed slightly better, ending only 0.5% down year-on-year. These figures highlight the cautious sentiment within the business sector despite lower consumer inflation and two interest rate cuts this year.”
The used vehicle market has also seen growing interest, with increased applications for pre-owned models. “There is strong demand in the pre-owned segment, but many consumers seem to be testing affordability or exploring credit options without committing to purchases,” commented Thembinkosi Pantsi, Vice-Chairperson of NADA. “The recent interest rate cuts may have encouraged some optimism, but many buyers are adopting a wait-and-see approach as they assess future rate movements.”
As the year-end approaches, there is cautious optimism for a stronger December. “With some stock available in key segments and marketing support from manufacturers expected, there is potential for a positive finish to the year,” said Cohen. “The strong rental industry sales signal a promising festive season, which we hope will set the stage for a better trading year in 2025.”
NADA is a proud association of the Retail Motor Industry Organisation (RMI).
