The Q1 2024 TransUnion Vehicle Price Index
The VPI measures the relationship between the price increases for new and used passenger vehicles, drawing from 15 top-volume manufacturers.
Don't miss out on this essential guide to the South African vehicle market.
VPI Q1 2024 Results
Rising inflation, higher fuel costs and currency fluctuations are squeezing consumer incomes, leading to a decline in vehicle sales.
We saw an 8.4% decrease in new passenger vehicle sales and 10.6% drop in total vehicles financed as consumers opt for cheaper, older used vehicles and alternative financing. This trend was reflected in higher average loan amounts (reaching R391,000) despite financial pressures on consumers.
However, manufacturers are countering with discounts and incentives to help consumers better afford vehicles — potentially stabilising and growing the market amid economic headwinds.
“The South African vehicle market is navigating a complex economic landscape resulting in modest shifts in consumer behaviour and market dynamics. This environment is expected to keep vehicle sales suppressed until greater economic stability and consumer confidence return. The ability to innovate, enhance financial inclusion, and adapt to the evolving mobility landscape remain crucial for achieving sustainable growth in the industry.”
– Lee Naik, Chief Executive Officer, TransUnion Africa
VPI Q1 2024: Insights
In Q1 2024, the average loan value rose to R391,000, reflecting higher prices and a shift in consumer preferences toward more premium vehicle segments.
18%
27%
55%
<R200,000
R200,000-R300,000
>R300,000
VPI Q1 2024: Assets
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