SA new vehicle sales surge the highest since pre-COVID, exports plunge on looming tariffs
Image: Supplied
The South African automotive industry in July delivered its highest new vehicle sales in nearly six years on the back of improving consumer confidence, favourable credit conditions, and a steady recovery in disposable incomes.
This comes as export volumes for July 2025 eased by 677 units, or 1.9%, from the 36 056 units exported in July 2024 to 35 379 units exported in July 2025.
The sector is also absorbing confirmation of the reimposition of a 30% tariff on general South African exports to the United States, set to take effect from 07 August, following the initial implementation of the 25% Section 232 tariffs on automotive products in April.
The Automotive Business Council (Naamsa) on Friday said though vehicle exports have displayed notable resilience despite the effects of the US 25% automotive tariffs, this latest development on tariffs cements a competitiveness blow, and a relative loss of competitiveness as peer countries retain or negotiate lower rates.
Naamsa CEO Mikel Mabasa said vehicle exports to the US - South Africa's second-largest trading partner and historically a key destination for domestically manufactured premium models - have plummeted by 82.2% in the first half of the year compared to the first half of 2024, dealing a significant blow to production volumes and supplier networks.
'The reimposition of these tariffs is deeply disappointing and has far-reaching implications. Without urgent trade remedy, the socio-economic fallout could be severe,' said Mabasa.
'As Naamsa, we have continued to lead intensive engagements with the government to advocate for a fair and reciprocal trading relationship - one that recognises the deep and long-standing automotive ties between the two nations.
'However, with the new tariffs now formalised and taking effect within days, this has issued a rather disappointing blow. We are not giving up on the US market - but we must now also look to deepen regional trade, expand market access in Africa and Asia, and accelerate the rollout of South Africa's NEV transition strategy to attract new investment and safeguard production capacity.'
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Data from Naamsa on Friday showed that aggregate new vehicle sales rose by 15.6% to 51 383 units in July from the same month a year ago.
This is an increase of 6 931 units from the 44 452 units sold in July 2024. Naamsa said July was the highest monthly total sales reported since October 2019.
Out of the total reported industry sales of 51 383 vehicles, an estimated 42 700 units, or 83.1%, represented dealer sales, an estimated 11.1% represented sales to the vehicle rental industry, 3.1% to government sales, and 2.7% to industry corporate fleets.
Naamsa said the much-welcomed decision by the South African Reserve Bank in July to further reduce the repo rate by 25 basis points to 7.00% - its third cut this year - will further inject much-needed stimulus into the economy.
Mabasa said the move reflected a proactive monetary stance aimed at reinforcing real sector growth without compromising price stability.
He said household credit extension has continued to improve, while consumer sentiment is rebounding - especially among middle- and upper-income groups. He said the implementation of pension reforms has also unlocked additional liquidity for big-ticket purchases such as vehicles.
'We are encouraged by the sustained positive momentum in new vehicle sales, which clearly underscores the resilience of South African consumers and the strategic importance of a stable macro-economic policy environment,' Mabasa said.
'This performance reflects more than short-term consumption - it signals the sector's confidence in the country's broader economic trajectory.'
The July data signal not only the continuation of earlier gains but also the emergence of a more adaptive and agile industry as the curtain rises on the second half of 2025.
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