South Africa is responsible for around half (49%) of all new-car sales in Africa, selling 529,562 units in 2022 out of the total 1,090,662 units sold on the continent.
The African region itself was responsible for a 1.3% share of the 81,628,533 global sales in 2022, the smallest out of the four continental areas on review in the latest Absa Vehicle and Asset Finance Bulletin, published by the National Association of Automobile Manufacturers of South Africa (Naamsa) in June.
Asia, Oceania, and the Middle East combined accounted for the largest portion of worldwide sales, these areas supplying an aggregate of 44,566,542, or 54.6%, of total transactions on new cars.
The Americas, which includes Canada, North, Central, and South America, was second with a performance of 20,888,241 units (25.6%); and third was Europe 15,083,088 units (18.5%).
On the other side of the automotive value chain, the African car manufacturing industry (excluding Egypt) produced a total of 1,022,783 vehicles in 2022 – amounting to 1.2% of global production of 85,016,728 units.
Once again the Asia/Oceania region was first with 58.8%, followed by the Americas with 20.9%, and Europe with 19.1%.
Split between developed and emerging economies, 43% of international car production went to the former and 57% to the latter.
Source: Naamsa illustration using OICA, 2023
South Africa vs the rest of Africa
The South African market was one of the only ones that increased its new-car sales in 2022, rising by 17.5% in comparison to 2021.
Egypt saw sales drop by -37% to 175,125 units, Morocco by -8% to 161,409 units, and the rest of Africa by a combined -2.2% to 224,566 units.
Transactions in the African region in total declined by -3.8%, from 1,133,520 units recorded in 2021 to an aggregate of 1,090,662 new cars sold in 2022.
“In terms of the overall 2022 performance, the South African automotive industry’s broader contribution to the Gross Domestic Product (GDP) comprised 4.9%, with 2.9% and 2% representing manufacturing and retail value add, respectively,” said Sharon Modiba, Naamsa Executive: Economic Policy and Data Management.
“A substantial 21.7% value addition within the domestic manufacturing output was derived from the vehicle and automotive component manufacturing. The automotive industry is a significant employer in South Africa, with a direct monthly average employment of 33,321 and an overall 460,000 employment multiplier across the value chain.”
Source: Naamsa illustration using OICA, 2023
Keyword: New-car sales in South Africa vs America, Europe, and Asia