Higher oil prices and the spectre of a massive fuel price hike next week meant September marked a global financial market recalibration with the escalating conflict adding renewed inflation risks. In response, the South African Reserve Bank's Monetary Policy Committee increased the repo rate by 25 basis points to 7,25%, resulting in a prime lending rate of 10,75%.
Despite these macroeconomic headwinds, South Africa's domestic new vehicle market has continued to demonstrate notable resilience, defying expectations amid higher borrowing costs, persistent inflationary pressures, and subdued economic growth.
Safe and inexpensive cars for students - click here
South Africa’s new vehicle market recorded 61 645 domestic sales in September 2026, a 12,7% rise from the 54 706 units sold in September 2025. The figure was 3 747 units higher than August’s originally reported total, a 6,5% increase, and marked the strongest monthly performance of the year so far. Export sales fell 18,8% year on year to 31 473 units.
Of the total industry sales, an estimated 50 171 units, or 81,4%, went through the dealer channel. Sales to the vehicle rental industry accounted for 13,8%, government purchases for 2,6% and corporate fleet sales for 2,2%. Passenger car sales rose 14,7% year on year to 44 291 units, with the rental industry taking 18,4% of that segment.
Light commercial vehicle sales, including bakkies and minibuses, increased 9,6% to 14 361 units. Medium commercial vehicle sales gained 3,4% to 789 units, while heavy truck and bus sales declined by 25 units to 2 204.
The third quarter closed with domestic sales of 177 251 units, up 15,4% from the second quarter and 12,0% from the same quarter last year. Passenger vehicle sales rose 15,3% over the second quarter and light commercial vehicle sales 18,1%.
Your dream car – make it happen with the best finance deal
Brandon Cohen, chairperson of the National Automobile Dealers’ Association, said the quarterly result gives dealers and manufacturers a positive base for the remaining months of the year.
He said rental fleet purchases remain a meaningful part of the market and that new model arrivals, promotional activity and quarter-end campaigns may have supported September’s performance. The composition of demand matters, he said, because rental fleet renewal and individual vehicle replacement can produce the same headline result while reflecting different purchasing needs.
The result came amid continued pressure on household budgets. Consumer inflation stood at 4,4% in August, with transport inflation at 8,8%. The Reserve Bank raised the repurchase rate by 25 basis points to 7,25% effective from 25 September, a move that affects financing costs in the months ahead.
Cohen said affordability is measured in rands available at the end of each month, and that higher vehicle prices, combined with steeper finance charges, have made the monthly instalment a decisive factor for many buyers.
“Dealers, he said, “work with customers who are weighing a higher purchase price against the cost of financing and running the vehicle, and a useful reading of the sales figures must take that consumer decision into account.”
New energy vehicle sales reached 18 945 units in the first eight months of 2026, already 13,4% above the 16 703 sold in the whole of 2025. Hybrids accounted for 49,6% of year-to-date NEV sales, plug-in hybrids for 36,5% and battery electric vehicles for 13,8%.
Cohen pointed out greater choice gives customers more ways to meet their mobility needs, though the decision involves purchase price, finance repayments, likely running costs and, for plug-in vehicles, access to charging and driving patterns.
“With fuel costs elevated,” he added, “hybrids and plug-in hybrids may attract more interest, but higher sticker prices mean the saving on fuel must be weighed against a larger upfront outlay and higher monthly repayments.
“September provides grounds for optimism. Sustaining that progress will depend on helping customers make affordable choices that work for them throughout ownership.”
Top 5 Selling Passenger Cars (September 2026)
- Volkswagen Polo Vivo – 2 534 units
- Chery Tiggo 4 Cross – 2 251 units
- Suzuki Swift – 2 012 units
- Toyota Corolla Cross – 1 964 units
- Toyota Starlet – 1 573 units
Starting or expanding your business and in need of a bakkie – click here
Top 5 Selling Light Commercial Vehicles (September 2026)
- Toyota Hilux – 3 769 units
- Isuzu D-Max – 2 551 units
- Ford Ranger – 2 502 units
- Toyota Hi-Ace – 617 units
- Mahindra Scorpio Pik-Up – 521 units
Colin Windell for Colin-on-Cars in association with
proudly ALL THINGS MOTORING
