National Automobile Dealer's Association Comment: South Africa’s New Vehicle Sales Continue To Buck Economic Trends
NADA Comment: South Africa’s New Vehicle Sales Continue To Buck Economic Trends
While global markets held their breath in anticipation of the impact of the Trump tariffs, July proved to be another strong month for new vehicle sales in South Africa.
"Despite global uncertainty and the looming threat of tariffs, South Africa’s vehicle market continues to show remarkable resilience,"
says Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA).
The total market recorded 51,383 units, an impressive 15.6% increase compared to July 2024. Dealer retail channels accounted for 83.1% of sales, while the rental industry contributed 11.1%, government 3.1%, and industry and corporate fleets the remaining 2.7%.
The passenger car market continued its upward trajectory, with 36,248 units sold. This is 20.1% higher than the same period last year and the highest monthly figure in recent years. By contrast, light commercial vehicle sales were up a more modest 6.9%, medium commercial vehicle sales grew by 13.9%, and the heavy truck and bus segment rose marginally by 1.3%. These figures suggest consumer confidence is outpacing that of businesses.
A key contributor to the robust passenger market is the growing influence of Chinese and Asian vehicle brands. Four Chinese importers are now among the top 15 best-sellers, including newer entrants such as Omoda/Jaecoo and Jetour. Financial institutions have also shown confidence in these brands by offering white-labelled finance packages, further supporting their market penetration. Meanwhile, manufacturers like Kia and Mahindra continue to feature prominently in the top 10, reflecting strong demand for affordable, value-driven options, a trend that has also underpinned Suzuki’s consistent success.
“The rapid rise of Chinese and Asian brands reflects a shift in buyer preferences toward affordability and value. It’s a trend we expect to intensify as more brands enter the market,”
says Cohen.
The rental market continues to support overall growth, with year-on-year sales up 31% by end-June, significantly outpacing all other channels. In July, rental again accounted for just over 11% of total sales, marking a departure from the long-standing trend of sub-10% contributions. Passenger vehicles remain the core of this momentum.
“The rental market has become a surprise growth engine, contributing significantly to the market’s momentum. It’s a strong indication of renewed confidence in travel and tourism sectors,”
Cohen adds.
The recent interest rate cut is viewed as a positive development. And while the South African Reserve Bank has not yet formally adopted a 3% inflation-targeting framework, doing so could provide long-term benefits to the automotive sector. However, ongoing volatility in global oil prices and pressure on the Rand, both exacerbated by tariff-related uncertainty, remain areas of concern.
NADA is a proud association of the Retail Motor Industry Organisation (RMI).
