SA new vehicle sales hit six-year high in August
Aggregate sales rose 18.7% year-on-year to 51,880 units, up from 43,692 in August 2024. This is the highest monthly sales total since October 2019 and reflects improving consumer demand amid favourable financing conditions and stronger disposable incomes.
Passenger cars led the momentum, with sales climbing 22.5% to 36,914 units, the best monthly performance since September 2015. The car rental industry accounted for 15% of these sales, underscoring robust activity in the tourism and mobility sectors.
Light commercial vehicles, bakkies and minibuses registered 12,326 sales, an increase of 15.1% compared with the same month last year. In contrast, medium and heavy truck segments weakened, with medium commercial vehicle sales down 3.9% to 717 units and heavy trucks and buses down 8.8% to 1,923 units.
Domestic demand continues to underpin the market, supported by the South African Reserve Bank’s July decision to cut the repo rate to 7.00%. This has lowered borrowing costs for households and dealer financing, improving access to credit. Household credit extension rose 3.1% year-on-year in June, while private-sector credit growth strengthened to 5%, aiding big-ticket purchases such as motor vehicles.
“Core domestic demand remains the backbone of the new vehicle market, with more affordable models and steady income growth keeping momentum intact,” said Naamsa.
On the external front, exports rose 6.2% year-on-year to 37,500 units. However, Naamsa cautioned that growing trade headwinds — particularly US tariff measures and intensified competition in other markets - may constrain export growth in the coming months.
Fuel price dynamics presented a mixed picture during the month, with petrol costs falling by 28c/litre while diesel rose by as much as 65c/litre. Brent crude remained steady at around $68–69 per barrel, providing some relief to retail buyers while pressuring logistics-heavy operators.