South Africa new vehicle sales surge
Passenger cars and commercial vehicles
Passenger cars led the growth, with 32,570 new units sold in June — a 21.7% increase compared to June last year. Rental car sales accounted for 10.7% of this segment. Meanwhile, new light commercial vehicle sales, including bakkies and minibuses, grew by 14.9% to 12,129 units.
Medium commercial truck sales rose 24.7% to 652 units, while heavy truck and bus sales saw a slight decline of 3.1%, with 1,943 units sold in June 2025.
Year-to-date performance and imports
For the first half of 2025, new vehicle sales are 13.6% higher than the same period in 2024, a performance largely driven by a rise in affordable imported models. Light vehicle imports increased by 25.6% among original equipment manufacturers (OEMs) and by 33.4% through independent importers. However, sales of locally manufactured vehicles declined by 14% year-on-year in the same period.
Economic factors supporting demand
Economic factors have supported this sustained growth. The South African Reserve Bank's 25 basis point interest rate cut in May 2025, low inflation remaining at 2.8% year-on-year, and improved access to credit have all contributed to consumer confidence and purchasing power.
Business confidence and export concerns
Despite the strong sales figures, the second quarter of 2025 revealed some caution among business leaders. The BER Business Confidence Index dropped to 40 in Q2 — down five points from the first quarter — reflecting concerns over political stability and global uncertainty. Even new vehicle dealers expressed unease despite positive sales trends, highlighting anxieties over longer-term risks.
South African vehicle exports rose by 7.9% in June to 36,343 units compared to last year. However, ongoing trade negotiations, especially with the United States, remain a concern. The expiration of a 90-day trade reprieve in early July adds uncertainty over South Africa's access to this key market.
Outlook and upcoming industry events
Domestic demand is expected to remain strong for the rest of 2025, buoyed by interest rate relief and consumer preference for affordable, well-equipped vehicles. Recent improvements in consumer confidence among middle- and high-income groups support this outlook.
As Naamsa marks its 90th anniversary, focus shifts to SA Auto Week 2025, scheduled for 1–3 October in the Eastern Cape. The event will bring together industry stakeholders to discuss investment, innovation, and the future of the South African automotive sector.
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