New vehicle sales in South Africa do follow some patterns but occasionally they veer away from expectation and, despite the looming fuel price hike and uncertainties about ongoing supply, the market recorded its strongest March in nearly two decades, with domestic sales reaching 58 060 units, according to naamsa | The Automotive Business Council.
The figure represents a 17,3% increase from the 49 500 units sold in March 2025, supported by a series of interest rate cuts and firmer consumer and business sentiment, even as cost pressures begin to build.
The March 2026 performance is the best for the month since 2007. Year-to-date volumes now stand at 161 978 units, which is 12,4% ahead of the same period last year. Dealer channels accounted for 88,7% of total sales, pointing to retail demand as the main driver of the market.
“March’s performance is worth noting. The market has not seen numbers like this in nearly two decades, signalling stronger domestic demand. Successive rate cuts since late 2024 are clearly feeding through, lifting both consumer and dealer confidence. That said, the environment is changing. April brings new pressures that households and the industry will need to manage carefully,” said Lebogang Gaoaketse, head of marketing and communication at WesBank.
The March outcome comes just before a notable shift in the cost environment. From April 1, the price of petrol increased by R3,06 per litre, while diesel rose by between R7,37 and R7,51 per litre, reflecting higher global oil prices linked to conflict in the Middle East.
The average Brent crude price climbed from $69,08 to $93,67 per barrel over the pricing period, with a weaker currency adding to the impact. A temporary R3,00 per litre cut in the general fuel levy offers short-term relief but is set to expire on May 5 and does not offset the full increase.
Passenger vehicle sales reached 39 370 units, up 18,2% year-on-year, with the car rental segment accounting for 6,5% of volumes, suggesting that retail demand is carrying most of the growth. Light commercial vehicles recorded 15 557 units, up 15,7%, while medium commercial vehicle sales increased by 14,0% to 823 units. Heavy trucks and buses rose 14,5% to 2 310 units. Dealer confidence also reached a 13-year high of 67 index points, consistent with the improvement in trading conditions.
“The fuel and energy increases coming through in April present a clear headwind for consumers who were only beginning to benefit from earlier rate cuts. Our focus remains on structuring finance sustainably over time, taking into account the total cost of ownership rather than the purchase price alone,” said Gaoaketse.
Higher electricity tariffs will add further pressure on both households and businesses. The combined effect is likely to feed into transport costs, food prices and overall living expenses, putting more strain on disposable income.
“A first quarter of this quality provides a solid base for the year. The underlying drivers of demand remain in place, and WesBank will continue to support customers with finance solutions aligned to their circumstances as conditions evolve,” he said.
Brandon Cohen, chairperson of the National Automobile Dealers’ Association (NADA), said: “This is certainly better than we had expected, given the growing cost-of-living pressures on consumers. In fact, it is the best March figure since 2007, which is truly notable.
“We expected to see some hesitation from buyers, with a degree of caution creeping back into the market as people waited to see where fuel prices would settle. To be fair, consumers were feeling more comfortable with the interest rate remaining unchanged and the news of government intervening to soften the blow of record fuel price increases for April.
“We also believe buyers may have been concerned that vehicle prices could rise as the Middle East conflict affects logistics, as well as the supply of raw materials and components to global manufacturers,” he said.
Colin Windell for Colin-on-Cars in association with
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