The South African new vehicle market has carried its 2025 momentum firmly into the new year, with domestic sales showing a solid increase in January and aggregate domestic new vehicle sales for January 2026 reached 50 073 units, marking an increase of 3 479 units, or 7,5%, from the 46 594 vehicles sold in the same month last year, according to the latest data from naamsa: The Automotive Business Council.
"The new car buying trend has continued unabated into the new year," said Ryan Seele, an executive committee member of the National Automobile Dealers’ Association (NADA), in response to the data. "This is a welcome and encouraging sign for the local motor industry."
The organisation noted that the performance reflects an improvement in underlying demand, supported by moderating inflation and a resilient consumer base. The vast majority of sales, 85,4% or an estimated 42 753 units, were channelled through dealer showrooms. Sales to the vehicle rental industry constituted 10,9%, with corporate fleets and government accounting for 2,1% and 1,6% respectively.
The passenger car segment recorded sales of 37 190 units, a 7,1% increase year-on-year. Within this segment, car rental companies accounted for 13,3% of purchases. The light commercial vehicle market, comprising bakkies and minibuses, saw a notable 11,0% rise to 10 996 units.
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In contrast, medium and heavy commercial vehicle sales decreased by 5,9% and 4,3% respectively. Naamsa linked this performance to trends in infrastructure investment, logistics performance, and broader investment confidence.
On the export front, a marginal increase of 0,6% was recorded, with 24 568 vehicles shipped in January. Naamsa indicated that while currency stability provided support, the outlook is being shaped by heightened protectionism in key international markets. The council highlighted that evolving global trade policies and industrial arrangements pose a risk to South Africa’s export competitiveness and market access.
From a macroeconomic perspective, the industry continues to benefit from an improved inflation environment. Headline CPI remains within the South African Reserve Bank's target band, with long-term expectations at multi-year lows. Although the Monetary Policy Committee held the repo rate steady at 6.75% in January, market anticipation of a future easing cycle continues to support buyer sentiment. A stronger Rand has also helped moderate new vehicle price increases.
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Looking ahead, Naamsa emphasised the pressing need for the finalisation of the comprehensive review of South Africa’s automotive policy framework. The council stated that a coherent, forward-looking policy is critical for securing the sector’s long-term competitiveness and investment attractiveness amid global technological and trade shifts.
NADA's Seele added that demand remains concentrated in more affordable vehicle segments, while noting sustained interest in certain luxury models. He also pointed to a forthcoming fuel price reduction as a factor expected to provide further relief to consumers and support vehicle usage levels.
Colin Windell for Colin-on-Cars in association with
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