Johannesburg, 02 June 2025 — South Africa’s new vehicle market experienced a significant upswing in May, with retail sales soaring by 22%, according to the latest data released by naamsa | The Automotive Business Council. This encouraging growth reflects renewed consumer confidence, bolstered by a recent interest rate cut and positive geopolitical developments, said Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association of South Africa (NADA).
“It was most satisfying to see consumer confidence, boosted by a further interest rate cut and positive developments on the geopolitical front, translate into a 22% improvement in retail new vehicle sales in May,” Cohen stated after reviewing the figures. “Although sales started off relatively slow in the first half of the month, activity surged in the latter half following President Ramaphosa’s meeting with U.S. President Donald Trump, the finalisation of the national budget, and the interest rate announcement.”
The growth was predominantly driven by a remarkable 30% increase in passenger car sales, with 31,741 units retailed across the country. Cohen added that the actual market performance may have been even stronger than reported, as only half of the 24 Chinese automotive brands currently available submitted sales data for the month.
Retail Dealer Channels Lead the Charge
The robust market activity was most evident within retail dealer channels, which accounted for 88.4% of total vehicle sales in May. This contrasts sharply with the more subdued contributions from rental companies, corporate fleets, and government purchases, which made up just 6.8%, 3%, and 1.8% of sales respectively.
“The dominance of retail channels highlights a clear shift towards private consumer buying, reflecting increased consumer confidence and a readiness to invest in personal mobility,” Cohen remarked.
Commercial Vehicles Signal Economic Optimism
The commercial vehicle segment also recorded an exceptional performance during May, a development Cohen sees as a promising indicator for the broader economy. “The strong uptake in commercial vehicles suggests that businesses are gearing up for growth and expansion, underpinning the positive economic outlook.”
Used Vehicle Market Trends Offer New Insights
The pre-owned vehicle market delivered compelling trends, as noted by Thembinkosi Pantsi, Vice-Chairperson of NADA. “May was a fascinating month for the pre-owned segment. We saw many buyers gravitating towards aspirational brands within the used vehicle market instead of new purchases. This includes a rising interest in premium brand models between seven and ten years old, which reflects a maturing market with more discerning consumers.”
Pantsi also highlighted a cautious yet growing interest in pre-owned Chinese models. “Some buyers prefer to ‘test drive’ the reliability and aftersales support of these vehicles before committing to new purchases, signaling a pragmatic approach to buying decisions.”
An encouraging sign of the month was the notable increase in dealership foot traffic. “We observed a rise in ‘walk-ins’ during May, with many customers arriving well-informed after conducting thorough research online. This shows a more engaged and knowledgeable consumer base.”
Looking Ahead
Reflecting on the positive momentum, both Cohen and Pantsi agree that May’s strong performance bodes well for the coming months. The combination of economic stimuli, consumer confidence, and evolving buying behaviours is set to keep the South African automotive market dynamic and resilient.
NADA, as a proud association of the Retail Motor Industry Organisation (RMI), remains committed to supporting dealerships and consumers alike through this period of renewed optimism.
