South African vehicle sales hit 17-year high in 2025

SOUTH Africa’s new vehicle market closed 2025 on a high, pushing past pre-pandemic volumes and delivering its strongest annual performance in more than a decade.

- WILLEM VAN DE PUTTE

After several years of suppressed demand, the recovery gathered pace through the second half of the year and culminated in total industry sales of 596 818 vehicles — a 15.7% improvement over 2024 and the highest annual total since 2008.

According to data released by The National Association of Automobile Manufacturers of South Africa (NAAMSA) the rebound was driven by a combination of easing financial pressure on consumers and a far broader selection of competitively priced vehicles.

A cumulative 150-basis-point cut in interest rates since September 2024, record-low vehicle inflation of 1.5%, lower fuel prices and improved credit availability all played a role in restoring buyer confidence.

Added to this was the liquidity injection from the two-pot retirement system, which unlocked discretionary spending for many households.

December sales

Industry sales reached 48 983 units for the month, up from 41 101 vehicles the previous year. Passenger car sales grew by 20.3% year-on-year, while light commercial vehicles increased by 23.7%, reflecting renewed demand from both private buyers and small businesses.

In contrast, the commercial transport sector ended the year under pressure, with medium commercial vehicles down 7.0% and heavy trucks and buses declining 13.2% compared to December 2024.

Retail demand remained the backbone of the recovery. Dealer sales accounted for 90.8% of December volumes, underlining a return to showroom-driven activity rather than fleet-led distortions.