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 6PM English South Africa Business News · Investing

Other recent episodes

How Currency Volatility Is Hitting South African SMEs

A new Verto report warns that currency volatility is now a bigger threat to SME margins than logistics. Rumbi Shoniwa from Verto SA explains how FX swings erode profits and the practical steps SMEs can take to protect themselves.
29 Apr 3PM 11 min

Engineering Through Headwinds: Leoka’s 10‑Year Growth Story

Leoka Engineering founder Katlego Makgata reflects on a decade of building a 100% Black‑owned EPCM firm in one of South Africa’s toughest sectors. We discuss OR Tambo’s mission‑critical operations and the digital innovations shaping the next era of African engineering.
29 Apr 3PM 18 min

The New Rules of SME Resilience in 2026

Merchant Capital CTO David Reynders joins us to unpack how South African SMEs are navigating a volatile economy. We explore cash‑flow discipline, cost‑cutting without damaging growth, and why “cash buys you time.”
29 Apr 3PM 13 min

South Africa’s Fuel Relief Extended

The government has extended the temporary fuel levy cut—but what does this mean for inflation, household budgets, and the Reserve Bank’s rate path? PSG Chief Economist Johann Els explains.
29 Apr 3PM 11 min

Easter on a Budget: How South Africans Navigated the Fuel Spike

Lightstone Retail’s Mohit Narotam breaks down new mobility data showing how South Africans re‑engineered their Easter travel plans to beat one of the biggest fuel hikes in years. From early departures to shorter trips and smarter refueling
29 Apr 3PM 12 min