South Africa’s 320,000 driver’s licence backlog is hurting car sales

The National Automobile Dealers’ Association (NADA) says that extensive administrative delays in document turnaround times and vital operational systems are drastically impacting motor vehicle sales in South Africa.

This is having a dramatic knock-on effect in the industry with many related businesses unable to do business and secure much-needed income at this critical time.

Last week, Transport minister Fikile Mbalula said that South Africa has a backlog of 320,000 driving licence, with demand growing by 90,000 each month.

Mbalula said this backlog is caused by corruption among back-office staff at driving licence testing centres (DLTCs). Over the past few weeks, many South Africans trying to renew their driving licences expressed frustration with the system.

One of the main complaints is the online booking system, where it is exceedingly difficult to get a slot for licence renewals.

“While we realise the enormous pressures and other priorities impacting South African mobility at this difficult time, our requests to assist the Department of Transport to address these issues have gone unanswered since 24 August,” Nada said in an open letter to Mbalula.

“Meanwhile, direct value continues to be lost across the motor industry value chain, courtesy of lost deals from the simple inability of licensing departments to make transactions possible.”

The automotive industry is highly dependent on municipal licensing departments to license, register, roadworthy and dealer stock vehicles as these are key legislative requirements in the purchase and sales process of motor vehicles.

The backlogs at these departments have resulted in a material slowdown in vehicle sales that could have been mitigated, Nada said.

“There are extensive delays at licensing departments nationally. Document turnaround times have shifted from one-day processes to as much as a month or longer.

“The delays in issuing eNatis documents impacts sales directly, and the shortage of face value eNatis documents is delaying vehicle registrations.”

Nada said that roadworthy test centres have additional delays in processing certificates.

Gauteng and KZN have implemented arbitrary restrictions on the number of vehicle inspections that can be conducted per day, which is only contributing to the broader backlog slowing down the motor industry’s recovery, it said.

“The consequence of the significant delays in drivers’ license renewals – albeit beginning to be addressed – is a growing number of declined finance applications due to missing documentation and an inability for new owners to insure their vehicles.

“These issues are eminently solvable through capacity-building and other measures that the NADA executive team are eager to engage the honourable minister on. ”

Nada said that some solutions that would greatly contribute to sector’s ability to do business could include the extension of the validity period of learner’s licenses, driving license cards, license discs, professional driving permits and registration of motor vehicles for a further six to 12 months while the backlogs are worked through.

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