South African vehicle sales hit 20-year March high, but a rocky road ahead for motorists
South African vehicle sales hit 20-year March high, but a rocky road ahead for motorists
South Africa’s new vehicle market delivered its strongest March in nearly two decades, with domestic sales reaching 58,060 units according to naamsa the Automotive Business Council. This represents a 17.3% increase on the 49,500 units sold in March 2025, supported by cumulative interest rate cuts and firmer consumer and business sentiment, even as cost pressures begin to build.
March 2026 is the strongest performance for the month since 2007. Year-to-date volumes now stand at 161,978 units, 12.4% ahead of the same period last year. Dealer channels accounted for 88.7% of total sales, indicating that retail demand continues to underpin the market.
The March outcome precedes a marked shift in the cost environment. From 1 April, petrol increased by R3.06 per litre, while diesel rose by between R7.37 and R7.51 per litre, reflecting higher global oil prices linked to conflict in the Middle East. The average Brent crude price increased from $69.08 to $93.67 per barrel over the pricing period, with currency weakness adding to the impact. A temporary R3.00 per litre reduction in the general fuel levy provides short-term relief but is due to expire on 5 May 2026 and does not offset the full increase.
Passenger vehicle sales reached 39,370 units, up 18.2% year-on-year, with car rental accounting for 6.5% of volumes, suggesting that retail demand is carrying the bulk of growth. Light commercial vehicles recorded 15,557 units, up 15.7%, while medium commercial vehicles increased by 14.0% to 823 units. Heavy trucks and buses rose 14.5% to 2,310 units. Dealer confidence also reached a 13-year high of 67 index points, consistent with the improvement in trading conditions.
Higher electricity tariffs will add to pressure on both households and businesses. The combined effect is likely to feed through into transport costs, food prices and overall living expenses, placing further strain on disposable income.
*Information provided by the publicist.
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