SOUTH AFRICA, Johannesburg – 03 November 2025 – The South African automotive sector is accelerating past expectations, posting another month of remarkable growth. According to naamsa | The Automotive Business Council, total vehicle sales in October reached 55,956 units, the highest monthly tally since March 2015. Passenger cars alone accounted for 39,610 sales, marking the strongest monthly performance since October 2012.
“These figures are even better than we anticipated,” said Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association (NADA). “Foot traffic in franchised dealerships remained encouraging throughout October, but the scale of these results—achieved amid tight household budgets and historically low consumer confidence—is truly remarkable.”
While the FNB/BER Consumer Confidence Index fell to -13, indicating ongoing household strain due to inflation, job insecurity, and budget pressures, Cohen highlights several factors bolstering vehicle affordability. “Interest rate cuts earlier this year, easing fuel prices, and a stronger rand—currently trading around R17.30 to the dollar—have all helped improve affordability at the point of sale,” he noted.
South Africa’s oil import bill has also benefited from stabilising crude prices around $65 per barrel, while inflation has remained within expectations, supporting consumers’ purchasing power.
Strong Year-on-Year Growth Across All Vehicle Segments
The overall new vehicle market grew 16% year-on-year and 2.3% month-on-month, with year-to-date sales up 15.7% compared to the same period in 2024. Dealer retail channels accounted for 79.1% of total sales, with rental contributing 16.6%, signalling a recovery in both business and tourism sectors.
“Lower interest rates and improved liquidity earlier in the year, including the two-pot pension withdrawals, gave the market a meaningful boost. While that initial effect has tapered, demand remains firm thanks to competitive pricing, attractive finance offers, and affordable models from new foreign entrants,” Cohen added.
Dealers also report that finance approvals and value-added product (VAPS) sales remain strong, suggesting that buyers are not only purchasing vehicles but also investing in long-term asset protection—a clear signal of growing consumer confidence.
Passenger Cars and Commercial Vehicles Drive the Market
The passenger car segment climbed 14.8% year-on-year, while light commercial vehicle sales surged 23.9%, reaching 13,361 units. Medium trucks rose 9.3%, though the heavy commercial segment saw a slight decline of 1%.
Looking ahead, Cohen expects the market to maintain its momentum into the end of the year, supported by Black Friday promotions and continued rand stability. Starting Wednesday, retail fuel prices will ease, with both grades of petrol (93 and 95) dropping by 51c per litre, and wholesale diesel prices falling by 19–21c, providing further relief to consumers and businesses alike.
“While uncertainties remain—ranging from the upcoming interest rate decision to the rollout of AARTO and broader macroeconomic pressures—consumer appetite for new vehicles remains resilient,” Cohen concluded.
As a proud association of the Retail Motor Industry Organisation (RMI), NADA continues to champion a robust, forward-looking automotive market, demonstrating resilience in the face of economic pressures.
