These were SA's top-selling cars and bakkies in June
According to automotive body Naamsa, June's new vehicle market grew for the ninth consecutive month to 47,294 units, an increase of 18.7% compared to June 2024. Year-to-date sales for the first half of the year are 13.6% up to 278,911 vehicles.
Last month the passenger car segment moved 32,570 units, a 21.7% increase over June 2024. Light commercial vehicles, bakkies and minibuses sold 12,129 units, a gain of 14.9% over the same month last year.
A wave of new models and brands continued to stimulate interest in the under R400,000 price band, said Brandon Cohen, chair of the National Automobile Dealers' Association (Nada).
'Most of the growth we're seeing is centred in the sub-R400,000 segment,' Cohen said.
'The price point remains critical for volume, affordability and trade-ins, with a direct knock-on effect on pre-owned sales performance. The used vehicle market is benefiting from improved affordability metrics, driven by softened interest rates, favourable vehicle pricing and the rollout of the two-pot retirement savings reform.'
The interest rate reprieve since September 2024 has lifted some burden on indebted consumers and stimulated demand for credit and consequently new vehicles, said Lebo Gaoaketse, head of marketing and communication at WesBank.
'The SA Reserve Bank has lowered rates 0.75% over the past nine months but may become more cautious with further cuts given global economic turmoil.'
While lower rates have eased affordability marginally, motorists continue to face budget constraints. Despite low inflation, the average contract term continues to increase while the amount of credit reduces, he said.
'South Africans want new cars but they're spending less on them. This has been enabled to some extent by the entrance of new brands to the market at aggressive price points, but also by innovative and attractive incentives on the dealer floor.'
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