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Motor trade sales growth June 2017 to June 2018
​​Date: 24 Aug 2018
Category: Economics

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We take a look at the latest motor trade sales data as published by Statistics South Africa and find that while motor trade sales as a whole grew by roughly 5% over the last year (including the effects of inflation). It is fuel sales which has increased substantially over this time period as a weaker Rand and higher oil prices has lead to record high fuel prices being paid by South African consumers.

• Average rump prices
• ​Price behaviour of  alcohol types in SA

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So fuel spending has gone up? Sure has

The graphic below shows the growth in income earned by the various categories of motor trade sales. And from the graphic it is clear the biggest increase in income earned from this sector comes from fuel sales, which is almost 21% higher than 12 months ago. Overall the sector showed moderate growth of just under 5%. If inflation of 5.1% is stripped out, the sector has actually earned less income in real terms (after inflation growth). Basically showing there is no underlying growth in the sector. Income earned from the sector is largely based on price increases/inflation.

The below provides a summary of the growth of the various categories in the motor trade sales industry over the last 12 months:

• Income from fuel sales: 20.76%
• Income from convenient store sales : 5.46%
• Total:     4.98%
• Used vehicle sales:  1.63%
• Workshop income:  -0.88%
• New vehicle sales:  -1.63%
• Income from the sales of accessories: -2.46%
  

The summary below shows the total Rand value spent on each category during June 2018:

• Income from the sales of accessories: R 9 469 000 000
• Income from convenient store sales: R 1 795 000 000
• Income from fuel sales: R 16 484 000 000
• New vehicle sales: R 13 841 000 000
• Used vehicle sales:R 9 889 000 000
• Workshop income: R 3 143 000 000
• Total: R 54 621 000 000

In total South African consumers spent almost R16.5 billion on fuel during June 2018. If this is continued for the next year it will mean South Africans spend a whopping R198 billion a year on fuel.  The total motor trade industry earned R54.6 billion in June 2018. If this was continued for a year it will imply the sector earned R655 billion in a year. And at the current pace fuel sales makes up almost 31%, thats right almost one third of total spending in the motor trade sales sector. Fuel sales spending is currently far higher than the amount of money spent by South Africans on new vehicles. In fact, new vehicle sales has declined by almost 2% in June 2018 when compared to a year ago. Dont be surprised to see a few car dealerships close up shop soon.

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Related Topics

• Average rump prices
• ​Price behaviour of  alcohol types in SA​

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