New vehicle sales surge to 10-year high on easing inflation, interest rates

Sales in September 2025 climb to 54 700 units, the highest level since September 2015

- SIPHELELE DLUDLA

SOUTH Africa's new vehicle market recorded its strongest month in a decade, with sales in September 2025 climbing to 54 700 units, the highest level since September 2015.

It was also the third consecutive month of volumes above 50 000 units and rounded out 12 months of continual growth for the new vehicle market.

According to figures released by the Automotive Business Council (Naamsa) on Thursday, the September sales total marked a 24.3% increase compared with the 44 000 vehicles sold in the same month last year.

The strong performance came against a backdrop of easing inflation, firm but restrictive monetary policy, and an expanding range of imported models.

Encouragingly for households, consumer inflation slowed to 3.3% y/y in August, below expectations.

Lower food, fuel, and transport costs have eased pressure on disposable incomes, while subdued vehicle price inflation — supported by a stronger rand and heightened competition— has helped sustain affordability in certain segments.

"This disinflationary trend offered some relief for car buyers, particularly in the small-car and entry-level categories, where cost sensitivity is highest. Despite inflation undershooting expectations, the South African Reserve Bank (Sarb) held the repo rate at 7.00% at its September meeting," said Naamsa.