This Week In The News
NEWS IN SHORT
- Sales of Chinese vehicles grew an astounding 645% between 2018 and 2023, to the point where brands like Chery and Haval are consistently sitting among the top 10 automakers in the country.
- Andrew Kirby, CEO of Toyota South Africa Motors (TSAM), has warned that government intervention is needed to protect the domestic auto industry from cheaper imports, more specifically those hailing from China and India.
- In India, where Honda said it wants to capture the largest share of the electric motorcycle market, the company has started to offer a battery sharing and swapping service so riders don’t have to face
long waits at charging stations. - The South African government has donated a Toyota Prado to South Sudan in support of the latter’s first-ever democratic election. It’s unclear whether the vehicle in question was donated out of the South African government’s existing fleet or purchased exclusively for donation.
- South Africa will add rosé wine, snuff and e-cigarette refills to its inflation basket and remove frozen potato chips and condensed milk to better reflect the nation’s fast-changing shopping habits.
- Consumers are increasingly opting for smaller, more affordable vehicles, as evidenced by a shift from C- and D-segment cars to the B-segment. Data from Lightstone Auto reveals that the average selling price of passenger vehicles declined by 2.27% in 2024, reinforcing this trend.
- Fuel prices in South Africa in February are anticipated to be adjusted as follows:
• Petrol 93 – Increase of 91c a liter
• Petrol 95 – Increase of 84c a liter
• Diesel 0.05% – Increase of R1.09 a liter
• Diesel 0.005% – Increase of R1.05 a liter
It should be noted that these predictions are not the official changes that will be made by the Department of Mineral and Petroleum Resources next month.
- Western Cape police have arrested nine suspects, including employees from the Oudtshoorn Traffic Department, for allegedly issuing fraudulent driver’s licenses. Reports suggest that these arrests stem from covert operations done over a period of time based on allegations that the arrestees all form part of an organized syndicate whereby learner or driver’s licenses were issued to applicants in return for gratification, using a local driving school.
- The average purchase price of a new passenger vehicle in 2024 was R490,478, according to industry wide figures released by Toyota at its State of the Motor Industry (SOMI) event held in Johannesburg recently.
- South Africa’s festive season roads once again became scenes of tragedy and reckless behaviour, as highlighted by Transport Minister Barbara Creecy in her address on the 2024/25 road statistics. An alarming example of this recklessness came from Gauteng, where a driver was clocked at a staggering 245km/h on the N1 near Honeydew on 18 December 2024 while driving a BMW sedan. This was the highest speed recorded by traffic authorities over the festive season.
- The South African Reserve Bank has cut interest rates by 25 basis points, dropping the repo rate to 7.50%. Four members voted for the cut, while two voted for rates to remain unchanged.
- Ford Motor Company is returning to the top tier of prototype sports car racing in the FIA World Endurance Championship (FIA WEC) in 2027 looking to recapture the magic and success of Ford racing nearly 60 years ago.
- Markets: South Africa’s rand was stable after Wednesday’s inflation data showed only a slight increase, and retail sales data for November jumped 7.7%. The rand eased over the past two days as markets started digesting the new Trump presidency, with many taking a wait-and-see approach. On Thursday, the rand was trading at R18.50/USD, R22.79/GBP and R19.25/EUR. Oil was trading lower, heading towards $78 a barrel.
The countries with the lowest and highest interest rates in the world.
- Fiji .25 (Interest Rate in Fiji averaged 0.43 percent from 2010 until 2024,)
- Venezuela 59.12 (Reaching an all time high of 83.73 percent in February of 2002)
In Africa.
Seychelles was last recorded at 1.75 percent
Zimbabwe's was last recorded at 35 percent
South Africa ranks 28th out of 49 countries in Africa
Rearview Mirror:
VW 'Dieselgate' fraud:
It is now 11 years ago that the motoring world was shocked by the discovery of Volkswagen’s emissions cheating that was uncovered and the fallout for the auto giant:
In 2013 US researchers at the University of West Virginia discover that certain VW diesel cars emit up to 40 times the permissible levels of harmful nitrogen oxide when tested on the road.
In 2014 The US Environmental Protection Agency accuses VW of duping diesel emissions tests using so-called "defeat devices".
Volkswagen admits installing software designed to reduce emissions during lab tests in 11 million diesel engines worldwide. VW shares plunge by 40 percent in two days and their Chief executive Martin Winterkorn steps down but insists he knew nothing of the scam.
In June 2016 VW agrees to pay $14.7 billion in buybacks, compensation and penalties in a mammoth settlement with US authorities. The deal, which covers 2.0 litre diesel engines only, includes cash payouts for nearly 500,000 US drivers.
January 2017 VW pleads guilty to three US charges including fraud and agrees to pay $4.3 billion in civil and criminal fines.
Car parts maker Bosch, which supplied elements of the software, agrees to pay nearly $330 million to US car owners and dealers but admits no wrongdoing.
A Michigan court sentences VW engineer James Liang to 40 months in prison and a $200,000 fine. VW executive Oliver Schmidt, who was arrested while on holiday in Florida, is sentenced to seven years in jail. The scandal cost VW over 27 billion euros and 14 arrests, including Winterkorn.
It’s a no: Toyota Hilux Champ not yet ready for South Africa
Champ debuted towards the end of last year as the sibling of the full-size Hilux known as the Hilux Revo in Thailand. (Image: Toyota Thailand)
Albeit a model that has existed for over a year now, the Hilux Champ is still not confirmed for South Africa.
In Thailand, pricing for the Champ ranges from 459,000 to 577,000 baht, which equates to approximately R242,000 to R305,000 at current exchange rates.
The 2025 SA Car of the Year Finalists are (in alphabetical order):
• BMW 1 Series
• BMW 5 Series Sedan
• BMW M5
• BMW X3
• Chery Tiggo Cross
• Citroën C3 Aircross
• Ford Mustang GT
• Ford Territory
• GAC EMKOO
• GAC GS3 EMZOOM
• GWM P500 HEV
• GWM Tank 300
• GWM Tank 500
• Honda CR-V
• Honda Elevate
• Hyundai Exter
• Jaecoo J7
• Mahindra XUV 3XO
• Mercedes-AMG C 63 S E Performance
• Mercedes-Benz CLE Coupe
• Mercedes-Benz E-Class (E 220d)
• MINI Countryman
• Mitsubishi Triton
• Omoda C9
• Suzuki Swift
• Toyota Land Cruiser Prado
• Toyota Starlet Cross
• Volkswagen Tiguan
• Volvo EX30
The 17 vehicles are all competing with one another for the ultimate title, but they are also performing in separate categories based on factors like their price tag, body shape, and powertrain.
CASE FILE
Section 56(2) of the Consumer Protection Act No. 68 of 2008 - Implied warranty of quality
Complaint
The complainant purchased a used truck. The complainant stated that there was a vibration on the truck when driving at a speed of 80 kilometers per hour, this was attributed to wheel alignment, which the complainant made sure was attended to. This could not fix the problem as the truck would still vibrate badly when carrying a load, but performed excellently with no load. This was due to a diesel leak and injector concerns, which the complainant repaired at his own costs, after which the complainant wanted the respondent to attend to other outstanding issues which the complainant could not pay for, or the transaction should be cancelled. The respondent denied any liability.
Recommendation
The office of the Motor Industry Ombudsman of South Africa (MIOSA) highlighted that in terms of section 56 subsection 2 of the Consumer Protection Act 68 of 2008 (CPA), there is a six months implied warranty after the delivery of any goods to a consumer. However, due to the complainant having taken the truck to a third-party repairer to have some repairs carried out, without notifying the respondent, the complainant had lost all recourse against the respondent in terms of section 56 subsection 1 of the CPA, and as such his expectations could not be supported by the MIOSA.