The South African new vehicle market reached 596 818 units in 2025, surpassing 2019 pre-pandemic sales levels and marking the highest annual total in 17 years. This recovery was supported by improved economic conditions, including a series of interest rate cuts, subdued vehicle price inflation and increased availability of competitively priced imported models.
December 2025 sales of 48 983 units reflected a 19,2% increase from December 2024, contributing to the year's positive performance. Retail demand was a primary driver, with dealers accounting for 90, 8% of monthly sales.
Toyota topped the sales charts
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"Ongoing sales improvement, which began in the second half of 2025, lifted annual sales," says Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA). "This strong performance was driven by demand at dealer level, reflecting a gradual recovery in showroom activity as affordability improved."
Passenger car sales rose 20,3% year-on-year in December, with annual volumes near 422 000 units. Light commercial vehicle sales increased 23,7% for the month. In contrast, medium commercial vehicle sales declined 7,0%, and heavy truck and bus sales decreased 13,2%.
Several factors contributed to the market's performance in 2025. A cumulative 150 basis point reduction in interest rates since September 2024, alongside vehicle price inflation easing to 1,5%, improved purchasing power. An influx of imported models, particularly from Asian markets, expanded buyer choice in a competitive trading environment.
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The trend toward New Energy Vehicles (NEVs) continued, with year-to-date NEV sales by November 2025 exceeding the total for all of 2024.
Vehicle exports for the year grew 4,4% to 408 224 units, the first time exports have exceeded 400 000. The industry body, naamsa, noted a revised 2035 emissions regulation in the European Union—a key export destination—provides some adjustment time for manufacturers. However, it cautioned the transition to cleaner mobility requires ongoing policy review to maintain export competitiveness.
Volkswagen moved up to second spot on the sales charts
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Geopolitical factors and international trade policy, including potential changes to South Africa’s access under the US AGOA agreement, are monitored for potential impact on exports.
The outlook for 2026 suggests continued market growth. The South African Reserve Bank projects GDP growth between 1,4% and 1,6%, supported by structural reforms. Continued lower inflation and the full effect of 2025's interest rate cuts are expected to support disposable income. New vehicle sales in 2026 are anticipated to show further growth, with forecasts suggesting an increase of between 9% and 11% over 2025 levels.
"The continued strength of the rand, lower fuel prices, favourable interest rates and a positive buying sentiment support near-term demand," Cohen added. "Early indicators suggest the positive momentum is likely to carry into 2026."
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December Sales
1. TOYOTA (including Lexus and Hino) - 12 683 units
2. VOLKSWAGEN GROUP (including Audi) 4 986
3. SUZUKI - 4 961
4. HYUNDAI - 3 051
5. FORD - 2 940
6. GWM (including Haval, Tank and Ora) - 2 453
7. CHERY - 2 249
8. ISUZU - 1 639
9. KIA - 1 508
10. JETOUR - 1 371
11. OMODA AND JAECOO - 1 317
12. RENAULT - 1 304
13. MAHINDRA - 1 234
14. NISSAN - 1 011
15. BMW GROUP (including MINI) - 843
16. STELLANTIS (including Alfa Romeo, Citroen, Fiat, Jeep, Leapmotor, Peugeot, and Opel) - 524
17. MERCEDES-BENZ - 414
18. MG - 387
19. FOTON - 308
20. HONDA - 319
21. JAC - 233
22. MAZDA - 235
23. BAIC - 213
24. JLR (including Jaguar, Land Rover and Range Rover) - 200
25. CHANGAN - 150
26. MITSUBISHI - 128
27. PORSCHE - 83
28. SUBARU - 66
29. VOLVO - 61
30. PROTON - 2
31. SCUDERIA (Ferrari) - 2
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