South Africa records highest new vehicle sales in a decade
Affordable imports helped boost the market in 2025.
Image: Supplied
South Africa’s new vehicle market has not only surpassed pre-pandemic levels for the first time, but also reached highs not seen in a decade as 2025 drew to a close.
According to Naamsa, new vehicle sales for 2025 closed in at 596,818 units, representing year-on-year growth of 15.7% over 2024’s total of 515,976.
This is also the highest total sales number since 2015, when 617,650 units were sold. Sales gradually declined from that high to 536,612 in 2019, before hitting a low of 380,206 during the lockdown-infested 2020.
2025 saw a strong conclusion, with December’s tally of 41,101 units representing a 19.2% year-on-year increase.
This landmark performance, according to Naamsa, was closely tied to broader economic improvements, as well as a cumulative 150bps in interest rate cuts, record-low vehicle inflation, an influx of affordable import models and a liquidity injection from the “two-pot” retirement system.
What to expect in 2026
It said the prospects for 2026 were equally positive.
“The full impact of 2025’s interest rate relief and lower inflation - expected to average 3.3% - points toward a further boost in consumer disposable income for 2026,” Naamsa said.
“The South African Reserve Bank projects real GDP growth for 2026 at around 1,4% to 1,6%, supported by ongoing structural reforms in electricity and transport through Operation Vulindlela. The new vehicle market momentum is upward and 2026 new vehicle sales are poised for a further upper single-digit to lower double-digit improvement of 9% to 11% over 2025 levels,” the organisation added.
Brandon Cohen, Chairperson of the National Automobile Dealers’ Association, concurred that the solid year-on-year growth was driven by improved affordability and consumer confidence.
“The continued strength of the South African rand, together with lower fuel prices, bodes well for vehicle price stability, while favourable interest rates, lower inflation and a positive buying sentiment support near-term demand,” Cohen said.
Vehicle exports gain
Vehicle exports also gained in 2025, Naamsa reported, with the 408,224 unit total representing a rise of 4.4% versus 2024 as exports breached the 400,000 mark for the first time ever.
The organisation said it continues to monitor the European market, which is South Africa’s primary vehicle export destination. It stated that the softening of the 2035 deadline from a 100% CO2 cut to a 90% cut could provide a marginal reprieve for carmakers navigating the new energy vehicle (NEV) transition.
Naamsa said the transition to clean mobility remains an existential priority for the industry, “necessitating a sustained and accelerated policy review to safeguard South Africa’s export competitiveness”.
IOL Motoring