New vehicle sales surge by 22%, as rate cut keeps sector upbeat

Automotive sector finds itself once again at the coalface of global economic shifts, says Naamsa CEO

- ASHLEY LECHMAN

DOMESTIC vehicle sales in South Africa saw a robust recovery in May with 45,308 units sold, marking an increase of 8 169 vehicles or a substantial 22.0% from 37 139 units in May 2024.

"The automotive sector finds itself once again at the coalface of global economic shifts," Naamsa CEO Mikel Mabasa said on Monday.

"The SARB's latest decision to lower interest rates is both timely and commendable. It directly supports consumer affordability and boosts production competitiveness at a time when global uncertainty is weighing heavily on our export markets. While the new tariff measures remain a concern, our industry has proven its resilience time and time again," Mabasa said.

Sales overview

Overall, out of the total reported industry sales of 45 308 vehicles, an estimated 40 062 units, or 88.4%, represented dealer sales, an estimated 6.8% represented sales to the vehicle rental industry, 3,0% to industry corporate fleets, and 1.8% to government sales.

The May 2025 new passenger car market at 31 741 units had registered an increase of 7 322 cars, or a gain of 30.0%, compared to the 24 419 new cars sold in May 2024.

Car rental sales accounted for 8.5% of new passenger vehicle sales during the month.

Domestic sales of new light commercial vehicles, bakkies and mini-buses at 10 938 units during May 2025 had recorded an increase of 601 units, or a gain of 5.8%, from the 10 337 light commercial vehicles sold during May 2024.