In the first half of 2024, a total of 6,361 units were sold, slightly below the 6,441 units sold in the same period of 2023 but surpassing prepandemic levels, a report by Simonis Storm revals.
In June 2024, vehicle sales increased to 993 units from 966 units in May 2024, representing a 2.8% month-over-month growth. However, this was a decline from the 1,320 units sold in June 2023, reflecting a 24.8% year-over-year decrease.
“Despite this, June 2024 marked the third-highest monthly sales figure this year. Additionally, rental agencies purchased 54 units in June 2024,” Simonis Storm says.
Commercial vehicles were the primary drivers of vehicle sales in June 2024, with 597 units sold, accounting for 60.1% of total sales. Light commercial vehicle registrations saw a year-overyear decrease of 22%, dropping from 657 units in June 2023 to 510 units in June 2024. Medium commercial vehicles experienced a slight decline, from 27 units in June 2023 to 21 units in June 2024, indicating relative stability in this category.
“Conversely, heavy commercial vehicle registrations increased by 36% year-over-year, rising from 11 units in June 2023 to 15 units in June 2024. However, this is a decline from the 20 units sold in the previous month, possibly indicating fluctuating demand for larger commercial vehicles due to heightened industrial activities. Extra heavy vehicle registrations remained steady, with a slight increase from 44 units in June 2023 to 45 units in June 2024, marking the highest sales since August 2023. Additionally, six buses were sold in June 2024, compared to just one in June 2023.”
Passenger vehicle sales in June 2024 totalled 396 units, down from 460 units in May 2024 (-13.9% month-over-month) and 580 units in June 2023 (-31.7% year-over-year). This represents the lowest monthly sales since July 2022, highlighting economic pressures such as still elevated inflation and high interest rates.
“These economic pressures have significantly impacted household spending, particularly in the automotive sector. When analysing private sector credit extension data, it becomes evident that corporates are performing better compared to households in 2024,” says Simonis Storm.
Corporate credit stood at 4.7% year-over-year by the end of May 2024. The instalment and leasing categories have shown notable growth, with a 29.1% year-over-year increase in May 2024, up from 14.1% year-over-year in May 2023.
“This increase was driven by improved demand from car rentals in the tourism sector, indicating that robust corporate activity is fuelling investment in the automotive sector. In contrast, household credit uptake remains subdued, with instalment and leasing credit growing by only 6.0% year-over-year in May 2024, although this is still higher than the 4.4% year-over-year growth observed last year.
“The weak performance in household credit uptake reflects the broader economic pressures that have dampened consumer confidence and spending, particularly in the automotive market. This divergence between corporate and household credit trends underscores how corporate investments can stimulate growth in the automotive sector, while economic pressures can hinder household participation in this growth,” explains Simonis Storm.
In the first quarter of 2024, the transport and storage sector expanded by 7.6%, slightly lower than the 8.1% growth seen in 2023, yet contributing 3.5% to GDP, its highest since late 2018. Despite its modest GDP share compared to other tertiary sectors, transport remains pivotal in driving economic activity. It supports sectors like retail, mining, and tourism by facilitating the efficient movement of goods and travel infrastructure.
“Wholesale and retail trade also showed positive growth, highlighting robust consumer demand. Vehicle sales in the first quarter of 2024 reached 3,503 units, an 11.8% increase from the previous year, marking the strongest first quarter since 2016.
“This uptick reflects improved consumer confidence and boosts economic activity across automotive retail, finance, and related services. The increase in vehicle sales not only signals a recovery in consumer confidence but also stimulates growth in the automotive sector, which in turn fuels private credit extension, particularly in instalment and leasing categories. Corporate credit growth, driven by sectors like car rentals in tourism, further underscores the interconnectedness of these economic activities. Together, these sectors play crucial roles in bolstering economic resilience and fostering growth amid current market dynamics,” concluded Simonis Storm.