Over 171000 Used Cars Were Sold on AutoTrader in the First Half of the Year

The 2024 Mid-Year Industry Report from AutoTrader offers a comprehensive analysis of the South African automotive market, revealing significant trends and metrics that are shaping the industry. 

Here are the key takeaways that the automotive industry  needs to know:

1. Surge in Car Searches and Sales:

The report highlights a 5% year-on-year increase in searches for both used and new cars, with an impressive 21 searches per second on the AutoTrader platform. The first half of 2024 saw 192 million advert views, a 16% increase from the previous year, and 172,668 used cars sold at an average price of R406,542 and mileage of 75,034 km.

2. Rise of Electric Vehicles (EVs):

Electric vehicle sales have surged by 78%, reflecting a growing consumer preference for sustainable options. This trend underscores the importance for manufacturers and dealers to expand their EV offerings and infrastructure.

3. Popular Vehicle Types:

SUVs continue to be the fastest-growing vehicle body-type, while hatchbacks are noted for offering better value due to their lower prices and mileages. This indicates a diverse consumer preference that spans both luxury and economy segments.

4. Macroeconomic Influences:

Various macroeconomic factors, including interest rates, unemployment, and inflation, have impacted vehicle sales. While used car sales saw a slight increase of 2.2%, new car sales have struggled to return to pre-pandemic levels, with only a 0.4% increase in 2023 and a downward trend continuing into 2024.

5. Consumer Behavior and Market Metrics:

AutoTrader's Car Buying Conversion Funnel tracks consumer behaviour from initial searches to final sales. New metrics like Market Day Supply and Stock Velocity are enhancing inventory management and understanding consumer demand. These insights are crucial for dealers to optimise their stock and sales strategies. If you are a car dealer advertising with AutoTrader, contact your Account Manager to better understand how you can make the most of AutoTrader’s Velocity Metrics!

6. Price and Stock Trends:

In 2024, the average price of listed used cars rose by 4.1%, while market monthly stock decreased by 3.6%. Despite a 16% increase year-on-year in Consumer Advert Views (CAVs), inquiries about vehicles dropped by 4%, indicating a downturn in used car sales.

7. Leading Brands and Models:

Volkswagen emerged as the most-searched brand, with the Toyota Hilux being the most-searched model. 

8. Shift Towards New-Energy Vehicles (NEVs):

There is a notable shift towards new-energy vehicles, particularly hybrids, which saw an 88% increase in used hybrid sales. The Toyota Corolla Cross Hybrid is the most popular model in this category, highlighting the growing consumer interest in fuel-efficient and environmentally friendly vehicles.

The 2024 Mid-Year Industry Report underscores the challenges and opportunities within the South African automotive market. It advocates for innovation and adaptation in response to evolving consumer preferences and economic conditions. For the automotive industry, staying ahead means embracing sustainable options, understanding consumer behaviour, and optimising inventory and sales strategies.

Download the full report here: https://www.autotrader.co.za/car-industry-report/2024-autotrader-mid-year-car-industry-report/6