The local automotive industry recorded its strongest June performance in nearly two decades last month, with new vehicle sales reaching 54 482 units. This represents an increase of 7 213 units compared to the same period last year, marking a 15,3% uplift that signals ongoing resilience in the sector.
Despite households and businesses facing rising fuel costs and broader economic pressures, the market has maintained its upward trajectory. The June figures are particularly encouraging given the dip in consumer confidence recorded during the second quarter of the year.
Industry analysts note that essential mobility needs and sustained economic activity continue to underpin demand, with the automotive sector playing a vital role in enabling trade, logistics and economic participation across the country.
The passenger car segment performed strongly, with 38 393 new cars sold during June - an increase of 5 882 units or 18,1% compared to June last year. The rental industry accounted for 9,7% of these sales. Light commercial vehicles, including bakkies and mini-buses, also showed positive movement with 13 171 units sold, up 8,4% from the 12 155 units recorded in June 2025.
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The commercial vehicle sectors delivered encouraging results as well. Medium commercial vehicle sales reached 647 units, showing a slight 0,6% increase, while the heavy truck and bus segment recorded 2 271 units, reflecting a robust 15,9% improvement compared to the previous year.
Of the total industry sales, dealer channels represented 86,9% of transactions, with vehicle rental companies accounting for 7,8%, government purchases making up 2,8%, and corporate fleets contributing 2,5%.
Government procurement provided meaningful support to the market during June, with passenger vehicle acquisitions rising by 22,1% and light commercial vehicle purchases increasing by 41,8% compared to the corresponding period. This helped offset some of the pressures facing the broader economy, which saw tighter financial conditions and rising inflation during the second quarter.
Looking ahead, there are promising indicators that conditions may become more favourable for consumers. The latest Absa Purchasing Managers' Index suggests that cost pressures may have started to ease towards the end of June, supported by lower global oil prices following reduced geopolitical tensions and improved supply conditions.
While manufacturing demand remains subdued, the improvement in forward-looking business sentiment points to the possibility of a more stable economic environment in the coming months.
Encouraging developments in the logistics sector also bode well for commercial vehicle demand. The 2025 World Bank Container Port Performance Index, produced in partnership with S&P Global Market Intelligence, ranked Durban as the most improved container port globally, while Gqeberha and Ngqura featured among the world's top-performing ports for year-on-year improvements.
These gains, supported by higher berth utilisation, better equipment availability and operational reforms, together with Transnet's reported increase in vessel traffic and cargo throughput during the past financial year, point to a gradual strengthening of freight and trade activity.
For the commercial vehicle market, these logistics improvements are particularly significant, as greater efficiency and higher freight volumes typically translate into increased fleet utilisation and renewed investment in transport equipment.
While export volumes experienced some pressure during June, declining by 6,9% to 33 879 units, the domestic market's solid performance demonstrates the underlying strength of local demand and the essential nature of the automotive sector to South Africa's economic fabric.
Colin Windell for Colin-on-Cars in association with
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