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 3PM English South Africa Business News · Investing

Other recent episodes

Pivot Point: Shaping Africa’s Energy Future

Ndapwilapo Selma Shimutwikeni, Founder and CEO of RichAfrica Consulting, shares insights on transforming Africa’s natural resource potential into sustainable economic growth. We explore investment opportunities in oil and gas, the Orange Basin, Namibia’s energy policy, ESG strategies, and how African countries can better leverage natural resources for long-term development.
12 Mar 1PM 38 min

Standard Bank Group Posts Strong 2025 Results

Standard Bank Group has closed 2025 on a strong note, reporting headline earnings of R49.2 billion and a return on equity of 19.3%, hitting the top end of its ROE target range. CEO Simpiwe “Sim” Tshabalala joins us to unpack the drivers behind the bank’s performance, including growth in digital…
12 Mar 1PM 11 min

South Africa’s Mining Sector Off to a Strong Start

Stats SA reports a 4.6% rise in mining output and a 31.7% jump in mineral sales year-on-year for January. Mining analyst Peter Major breaks down which minerals are driving growth, whether gains are linked to prices or volumes, and what these trends mean for investors and the South African economy.
12 Mar 1PM 11 min

INSIDE YOUR POCKET: Retirement Under Pressure: Rising Debt Among Older South Africans

As South Africa’s population ages, more seniors are turning to credit to cover everyday expenses. Andrew Fulton, Director at Eighty20, explores the financial realities for “Humble Elders” and “Comfortable Retirees,” why defaults among seniors are rising, and what this means for families, policymakers, and the broader economy.
12 Mar 1PM 13 min

Sanlam Delivers Strong 2025 Results and Pan-African Expansion

South Africa’s leading financial services group, Sanlam, achieved record new business of R496 billion, with net client cash flows more than doubling. CFO Abigail Mukhuba discusses the group’s operational performance, Pan-African growth strategy, strategic acquisitions like Assupol and Shriram Finance, the launch of the ZARU stablecoin, and how the company…
12 Mar 1PM 11 min