New-vehicle market surges as easing inflation, fuel prices and rate cuts lift sentiment

SOUTH Africa's new-vehicle market posted another month of robust growth in November, surging by 12.5% year-on-year buoyed by a favourable macroeconomic environment that strengthened household and business confidence while helping to ease affordability constraints.

- SIPHELELE DLUDLA

However, the Automotive Business Council (Naamsa) on Monday said export volumes dipped but remained resilient in view of softer global demand conditions and renewed geopolitical tensions. Meanwhile, domestic sales remained firmly on an upward trajectory.

Data from Naamsa showed that aggregate new-vehicle sales rose to 54 896 units, an increase of 6 113 units compared to the 48 783 units sold during the same month a year ago.

The contrast with November 2024 is striking. Last year's units marked the best month of that year but was driven primarily by rental fleet deals as consumer demand declined.

It also stood in sharp contrast to the same period in 2023, when the market was still reeling from its fourth consecutive monthly decline. This November, growth was broader across segments and supported by real improvements in the economy.