South Africa’s new vehicle market boomed in July, recording its strongest monthly sales since October 2019.
According to the Automotive Business Council (Naamsa), aggregate new vehicle sales reached 51 383 units, a 15.6% increase from the 44 452 units sold in July 2024.
The new passenger car market led the charge, with 36 248 units sold – the highest since January 2017 – marking a 20.1% increase from the 30 176 units sold in July 2024.
Car rental sales contributed a solid 14.0% to this segment. Light commercial vehicles, including bakkies and mini-buses, saw a 6.9% uptick, with 12 356 units sold compared to 11 556 units the previous year.
Medium commercial vehicle sales rose by 13.9% to 703 units, while heavy trucks and buses dipped slightly by 1.3% to 2 076 units. Dealer sales dominated, accounting for 83.1% of total industry sales, followed by vehicle rental (11.1%), government (3.1%), and corporate fleets (2.7%).
Naamsa CEO Mikel Mabasa attributed the sector’s resilience to a stable macroeconomic environment.
“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 macroeconomic 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,” he said.
However, vehicle exports face headwinds due to global trade uncertainties. July exports fell by 1.9% to 35 379 units from 36 056 units in July 2024, largely due to the United States’ 25% automotive tariffs imposed in April 2025.
Naamsa said the reimposition of a 30% tariff on general South African exports, effective from 7 August, further complicated matters, particularly as peer countries secured lower tariff rates. Vehicle exports to the US, South Africa’s second-largest trading partner, plummeted by 82.2% in the first half of 2025, impacting production and supplier networks.
Mabasa said the sector was concerned about the impact of the tariffs.
“The reimposition of these tariffs is deeply disappointing and has far-reaching implications. Without urgent trade remedy, the socio-economic fallout could be severe,” he said.
However, he added that year-to-date exports remained 2.5% ahead of 2024, driven by diversified markets and robust supply chain adjustments.
“South Africa’s automotive industry has long relied on the strength of its export engine to drive production, attract investment, and create high-value employment,” Mabasa said.
“The current environment has tested that model, but our ability to maintain solid export volumes amid escalating trade uncertainty demonstrates the commitment of our OEMs to South Africa’s industrial base,” he said.
Looking ahead, the industry is gearing up for SA Auto Week 2025 which runs from 1-3 October in Gqeberha under the theme ‘Reimagining the Future, TOGETHER: Cultivating Inclusive Growth and Shared Prosperity’.
The South African Automotive Masterplan 2035 and Automotive Production and Development Programme Phase 2 will be under the spotlight at the event.
“We must seize this moment. With positive domestic fundamentals and export volumes holding firm, now is the time to intensify policy coordination, deepen localisation, and invest boldly in the technologies of the future,” Mabasa said.
